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At the End of the Accounting Year,December 31,20x4,adjusting Entries Were

Question 102

Multiple Choice

At the end of the accounting year,December 31,20x4,adjusting entries were not made for wages that had been earned but not yet paid,$1,800,and rent revenue of $1,400 that had been earned but not yet collected.As a consequence,the 20x4 amount of pre-tax earnings was:


A) Overstated by $3,200.
B) Understated by $3,200.
C) Overstated by $400.
D) Understated by $400.

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