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e-lub [12.9K]
3 years ago
10

At the end of the current year, the accountant for Navistar Graphics forgot to make an adjusting entry to accrue Wages payable t

o the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is one of the effects of this error?
A. Net income is overstated.
B. Liabilities are overstated.
C. Net income is understated.
D. Expenses are overstated
Business
1 answer:
solniwko [45]3 years ago
3 0

Answer: The correct answer is A). Net income is overstated.

Explanation: Net income is equal to Income less expenses. When an accrued expense is not recognised it results in an understated expense which in turn leads to an overstated net income.

Wages payable is a liability. An omission of such a liability means that wages expenses is also omitted.

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The total amount of carbon fixed into organic matter through photosynthesis (or chemosynthesis) in a given unit of time is known
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<h3>What is Gross primary productivity?</h3>

Gross productivity generally is the rate of energy capture.

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4 0
2 years ago
The portfolio that contains the average return on a combination of market index with the same beta is often called _____________
elena-s [515]

The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.

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5 0
2 years ago
Crane Corporation acquires a coal mine at a cost of $404,000. Intangible development costs total $101,000. After extraction has
Svet_ta [14]

Answer:

The journal entry to record depletion is  :

Debit : Depletion Expense $74,235

Credit : Accumulated Depletion $74,235

Explanation:

<em>Depletion Expense = Depletion rate × units extracted during the year</em>

where,

<em>Depletion rate = (Cost - Salvage Value) ÷ Estimated total units</em>

Therefore,

Depletion rate = ($404,000 + $101,000 + $80,800 - $161,600) ÷ 4,040 tons

                        = $ 105 per ton

Therefore,

Depletion Expense = $ 105 per ton × 707 tons

                                = $74,235

<u>Journal Entry :</u>

Debit : Depletion Expense $74,235

Credit : Accumulated Depletion $74,235

8 0
3 years ago
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