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morpeh [17]
3 years ago
8

Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause:A)net income to be oversta

ted.B)an understatement of assets and an understatement of revenues.C)an understatement of revenues and an understatement of liabilities.D)an understatement of revenues and an overstatement of liabilities.
Business
1 answer:
klemol [59]3 years ago
3 0

Answer:

B) An understatement of assets and understatement of revenues

Explanation:

Accrued revenues are revenues that are earned but are still collectible.

That means the adjusting entry should have been:

<em>Debit</em> to Accounts Receivable <em>and</em>

<em>Credit</em> to Revenue

If the company failed to prepare this adjusting entry then the Accounts Receivable will not be recorded and thus will understate the Asset since Accounts Receivable is an Asset.

The same goes for revenue, if not recorded, will understate Revenue.

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Your client, Tom, asks you to prepare his financial statements. He is especially curious about his net worth. He asks you to exp
Vilka [71]

Answer: Balance sheet

Explanation: In simple words, balance sheet refers to the statement which is prepared by an entity at the end of the financial year for depicting its assets, liabilities and equity in hand at that particular point of time.

Balance sheet shows the net worth of an entity at the end of the year and can also be used to evaluate how much of the assets are funded with the capital and  for how much any liability has been taken over.

Thus, from the above we can conclude that the correct answer is balance sheet.

6 0
3 years ago
In preschool one day, 5 children decided to help each other build a fort with the items that were available to them. each child
Marina CMI [18]
This is an example of associative play.
It means that the children are in the same location, but not necessarily close to each other or playing together. Each of these kids has their own plan and agenda of how to bring the plan to fruition, and they are not really cooperating in order to build the fort.
5 0
3 years ago
In determining basic earnings per share, dividends on nonconvertible cumulative preferred stock should be:a. deducted from net i
DiKsa [7]

Answer:

b. deducted from net income whether declared or not

Explanation:

The formula to compute the basic earning per share is shown below:

Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)

In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.

So, the dividend arrears are to be paid to the cumulative preferred stock.

4 0
3 years ago
Imagine you are a sales manager and need to tell an employee that his sales numbers have not been very good and he needs to impr
Vladimir79 [104]

Yes, email would be a good choice of telling an employee that his/her sales have not been good.

As just sending a simple email is easy, fast and efficient and it gets the word to that employee as quick as possible

7 0
2 years ago
Vertical disintegration occurs when a company: a. uses its capital resources to purchase its competitor. b. takes advantage of a
Marizza181 [45]

Answer:

b. takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.

Explanation:

Vertical disintegration occurs when a company takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.

A common or popular example of vertical disintegration is Hollywood because it comprises of specialized business firms that are saddled with the responsibility of performing specific tasks or services such as creating movie trailers, posters, editing, sound effects, special effects, lighting, etc.

Generally, vertical disintegration help business firms or organizations to share risk associated with doing business among themselves.

5 0
3 years ago
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