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If an adjustment for accrued rent is omitted from the financial reports the effect is: Select one: a

Accounting

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If an adjustment for accrued rent is omitted from the financial reports the effect is:

Select one:

a. liabilities are overstated; profit is understateD.

b. liabilities are understated; profit is overstateD.

c. assets are overstated; profit is understateD.

d. assets are understated; profit is overstateD.

 

51. __________________ is enhanced when information is classified, characterised, and presented clearly and concisely.

Select one:

a. Understandability

b. Reliability

c. Consistency

d. Verifiability

Clear my choice

 

Johanna’s Hair Studio paid $300 for advertising during the month using Cheque No. 100558. Ignore GST. Which of the following reflects the effect on the accounting equation?

Select one:

a. Increase in assets of $300; increase in liabilities of $300.

b. Decrease in equity of $300; decrease in assets of $300.

c. Decrease in assets of $300; increase in equity of $300.

d. Decrease in equity of $300; increase in assets of $300.

 

Maintaining a satisfactory relationship between an entity’s resource inputs and its outputs of products or services is referred to as:

Select one:

a. controlling.

b. effectiveness.

c. directing.

d. efficiency.