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APA Exam CPP-Remote Topic 7 Question 49 Discussion

Actual exam question for APA's CPP-Remote exam
Question #: 49
Topic #: 7
[All CPP-Remote Questions]

What is the effect of failing to record salaries that are earned but not paid at the end of an accounting period?

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Suggested Answer: A

by Stephen at Jun 30, 2024, 09:14 AM

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Van
5 months ago
I'm scratching my head on this one. Guess I need to brush up on my accrual accounting. Oh well, time to dive into the books!
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Leota
4 months ago
D) overstatement of liabilities for the period
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Heike
4 months ago
C) understatement of assets for the period
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Tiara
4 months ago
B) overstatement of expenses for the period
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Detra
4 months ago
A) understatement of expenses for the period
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Stevie
5 months ago
B) overstatement of expenses for the period
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Lelia
5 months ago
Haha, I'm just hoping I don't get this question wrong and end up having to 'work for free' like these poor folks! D is the way to go.
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Linwood
3 months ago
D) overstatement of liabilities for the period
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Selma
3 months ago
C) understatement of assets for the period
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Makeda
3 months ago
B) overstatement of expenses for the period
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Ciara
3 months ago
A) understatement of expenses for the period
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Brett
4 months ago
D) overstatement of liabilities for the period
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Georgiann
4 months ago
C) understatement of assets for the period
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Gilma
5 months ago
B) overstatement of expenses for the period
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Ilona
5 months ago
A) understatement of expenses for the period
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Lashandra
5 months ago
I agree with Audry, not recording earned but unpaid salaries would make expenses appear lower than they actually are.
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Curt
5 months ago
I'm going with D. This is a classic accrual accounting principle. Gotta keep those books balanced, you know?
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Audry
5 months ago
A) understatement of expenses for the period
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Fabiola
5 months ago
B seems more logical to me. If you don't record the salaries, it would lead to an overstatement of expenses for the period.
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Sabrina
5 months ago
Definitely D. Unpaid salaries are liabilities that need to be recorded, so failing to do so will overstate the company's financial position.
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Annmarie
4 months ago
D) overstatement of liabilities for the period
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Lawana
5 months ago
C) understatement of assets for the period
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Craig
5 months ago
B) overstatement of expenses for the period
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Alpha
5 months ago
A) understatement of expenses for the period
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Karma
6 months ago
What is the effect of failing to record salaries that are earned but not paid at the end of an accounting period?
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Casie
6 months ago
Hmm, I think the correct answer is D. Overstatement of liabilities for the period. Unpaid salaries should be recorded as accrued liabilities.
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Paulina
5 months ago
I see your point, but I still think it's D. Overstatement of liabilities for the period.
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Delila
5 months ago
I disagree, I think the correct answer is A. Understatement of expenses for the period.
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Loise
5 months ago
No, I believe it is B. Overstatement of expenses for the period.
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Verona
6 months ago
I think the correct answer is A. Understatement of expenses for the period.
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