Solved

Johnson Company Neglected to Accrue Interest Expense of $2,000 on Its

Question 33

Multiple Choice

Johnson Company neglected to accrue interest expense of $2,000 on its year-end trial balance. This results in an ________.

A) overstatement of net income
B) overstatement of assets
C) overstatement of liabilities
D) understatement of shareholders' equity

Related Questions

Q28: Gains and losses result from peripheral transactions

Q29: List the steps in preparing a worksheet.

Q30: On January 1, Mountbatten Corporation paid $14,000

Q31: The first financial statement to be prepared

Q32: To ensure that all economic events are

Q34: When a prepaid expense initially recorded as

Q35: If an unearned revenue is initially recorded

Q36: All of the following accounts are permanent

Q37: Jenner Corporation paid its annual dividend. This

Q38: Thunderball Sports Club collected $328,000 unearned revenue