If a Required Accrued Expense Adjustment Had Not Been Made

question 45

Multiple Choice

If a required accrued expense adjustment had not been made, the financial statements would have been affected as follows:

• A)net income understated, assets overstated, liabilities unaffected, and owner's equity understated.
• B)net income overstated, assets unaffected, liabilities understated, and owner's equity overstated.
• C)net income understated, assets overstated, liabilities understated, and owner's equity unaffected.
• D)net income overstated, assets overstated, liabilities understated, and owner's equity overstated.

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