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?

Aunderstatement of expenses for the period

Boverstatement of expenses for the period

Cunderstatement of assets for the period

Doverstatement of liabilities for the period

Show Suggested Answer

Suggested Answer: A

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

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Van

11 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

10 months ago

D) overstatement of liabilities for the period

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Heike

10 months ago

C) understatement of assets for the period

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Tiara

10 months ago

B) overstatement of expenses for the period

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Detra

10 months ago

A) understatement of expenses for the period

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Stevie

11 months ago

B) overstatement of expenses for the period

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Lelia

11 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

9 months ago

D) overstatement of liabilities for the period

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Selma

9 months ago

C) understatement of assets for the period

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Makeda

9 months ago

B) overstatement of expenses for the period

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Ciara

9 months ago

A) understatement of expenses for the period

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Brett

10 months ago

D) overstatement of liabilities for the period

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Georgiann

10 months ago

C) understatement of assets for the period

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Gilma

11 months ago

B) overstatement of expenses for the period

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Ilona

11 months ago

A) understatement of expenses for the period

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Lashandra

11 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

11 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

11 months ago

A) understatement of expenses for the period

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Fabiola

11 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

11 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

10 months ago

D) overstatement of liabilities for the period

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Lawana

11 months ago

C) understatement of assets for the period

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Craig

11 months ago

B) overstatement of expenses for the period

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Alpha

11 months ago

A) understatement of expenses for the period

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Karma

12 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

12 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

11 months ago

I see your point, but I still think it's D. Overstatement of liabilities for the period.

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Delila

11 months ago

I disagree, I think the correct answer is A. Understatement of expenses for the period.

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Loise

11 months ago

No, I believe it is B. Overstatement of expenses for the period.

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Verona

12 months ago

I think the correct answer is A. Understatement of expenses for the period.

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