Requirement 2. If the accountant was biased to report a better operating performance for the period than actually occurred, which of the preceding adjustments would he have not made and why? Would it have been ethical for him to do this? The accountant could have reported a better operating performance than actually occurred by not making the adjustments to the accounts, which would have resulted in and net income as follows. Select the account(s) from the list and enter the amount(s) of either the overstatement or understatement of the net income as a result of omitting these adjustments. (Use parentheses or a minus sign when entering understatements. Leave unused cells blank. Complete the entire table before checking your answer.) Overstated/Understated by omission of: the company's It would have been for the accountant to omit these adjustments because their omission results in an income statement that the company's net income for the period. By operating performance, the accountant is the users of the financial statements into thinking the company performed better than it actually did, which constitutes a. Prepaid insurance, beginning, $660. Payments for insurance during the period, $1,900. Prepaid insurance, ending, $790. b. Interest revenue accrued, $800. c. Unearned service revenue, beginning, $950. Unearned service revenue, ending, $550. d. Depreciation, $5,500. e. Employees' salaries owed for three days of a five-day work week; weekly payroll, $11,000. f. Income before income tax, $19,000. Income tax rate is 25%