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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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Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer
laila [671]

Explanation:

The Journal entry is shown below:-

On Jan 31

Allowance for doubtful accounts $2,800

                     To Accounts receivable - C. Green $2,800

(Being the uncollectible amount is recorded)

Mar 09

Accounts receivable - C. Green $2,300

               To  Allowance for doubtful accounts $2,300

(Being the written off amount is recorded

Mar 09

Cash $2,300

              To Accounts receivable -  C. Green $2,300

(Being the payment is received is recorded)

7 0
3 years ago
Read 2 more answers
WoodCore Inc. produces an entire line of office furniture at its manufacturing facility in the United States and then ships its
devlian [24]

Answer: D. exporting

Explanation:

Exporting is the sale of goods to other countries apart from your own even though the goods being sold were produced in your own country.

Exporting works best when the country doing the exporting is capable of producing the goods being exported at a lower price than the country that it is sending to, that way the people in that country have an incentive to buy it over locally made products. WoodCore is producing in the U.S. and selling elsewhere. This is exporting.

8 0
3 years ago
Which of the following is an example of money as a unit of account?
Savatey [412]
The answer is lending your bestfriend 25 dollars to buy a guitar.
Unit of costs is the amount incurred by a particular company to be able to produce, store and sell the number of the same products. In the given example. 25 dollars is the cost of the guitar or the unit of costs.
8 0
3 years ago
Rather than generating tax revenue as do tariffs, subsidies require tax revenue. Therefore, they are not an effective protective
KatRina [158]

Yes. Subsidies are benefits that the government can grant to institutions, households and businesses to promote economic efficiency and reduce market failures. They may be distributed through cash or by cutting tax rates. However, there is controversy about the effectiveness of using subsidies for the economy, often related to the inefficiency of promoting a free market, allocating resources that could be used for investment in productive resources and masking the results of economic efficiency. Another major concern with the use of subsidies is the formation of political alliances of those who receive them and those who provide them, creating political interests because of their use.

6 0
3 years ago
An attendant at a car wash is paid according to the number of cars that pass through. Suppose the probabilities are 1/12, 1/12,
Paladinen [302]

Answer: The attendant’s expected earn- ings for the period between 4:00 P.M and 5:00 P.M is <u>$12,67.</u>

Explanation: <u>The discrete random variable X</u> represent attendant’s earnings.

The expected value of the discrete random variable X is

<h2>= E (x) = ∑× f(x)</h2><h2>= 7 × 1/12 + 9 × 1/12 + 11 × 1/4 + 13 × 1/4 + 15 × 1/6 + 17 × 1/6 = <u>12,67.</u></h2><h2><u /></h2>
5 0
3 years ago
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