**Answer and Explanation:
**

The type of adjustment and the status of accounts before the adjustment is shown below:-

** Type of adjustment Accounts before adjustment
**

(a) Accrued revenues Assets understated

Revenues understated

(b) Prepaid expenses Assets overstated

Expenses understated

(c) Accrued expenses Expenses understated

Liabilities overstated

(d) Unearned revenues Revenues understated

Liabilities overstated

(e) Accrued expenses Expenses understated

Liabilities understated

(f) Prepaid expenses Assets overstated

Expenses understated

**Answer:**

The common problem i encounter mostly is the statistical modelling problem.

In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.

My null hypothesis would be that there is no significant effect of independent variable on dependent variable. for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.

**Explanation:**

**Solution**

The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.

In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.

Since there are always two variables or two categories. hence it has a two sample test.

The Hypothesis can be shown below:

**Null hypothesis**:

H0:There is no significant effect of independent variable on dependent variable.

**Alternative hypothesis**:

Ha: There is significant effect of independent variable on dependent variable.

Answer: The Owner’s Equity ending balance is $15,730.

Explanation: In order to calculate the ending owner’s equity you need to identify the capital, revenue and expense accounts.

The Owner’s Equity is $12,940 and withdrawals are $790.

Revenue (Fees Earned) is $9,250.

Expenses equal 2,500 + 1,960 + 775 + 250 + 185 = $5,670.

Now that we have identified the each of the three categories, we will use the owner’s equity equation.

Owner’s Equity = Capital - Drawing + Revenues - Expenses

Owner’s Equity = $12,940 - 790 + 9,250 - 5,670

Owner’s Equity = $15,730

The answer is a problem based off the question

Your answer is c stocks are riskier then savings accounts,