Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
Answer:
3. net income is understated by $175
Explanation:
There were two transactions omitted. The first transaction is unearned rent revenue of which $450 was earned. This earned rent revenue increases income by $450. While the second transaction was accrued interest payable of which $275 is owed. This interest payable increases liabilities by $275.
Therefore, from the above, income or revenue is understated by $450, while expenses is understated by $275.
Therefore, net income is understated by income less expenses, thus 450 - 275 = $175. This also implies that liabilities are overstated by $175.
<span>within 180 days from the time the employee filed a complaint provided the eeoc finds that there has been discrimination
C.
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