Which of the Following Will Happen If the Accrual Adjustment

question 195

Multiple Choice

Which of the following will happen if the accrual adjustment entry is not made to record an expense incurred but not yet recorded?

• A)Both expenses and liabilities will be overstated.
• B)Both expenses and liabilities will be understated.
• C)Expenses will be understated and liabilities will be overstated.
• D)Expenses will be overstated and liabilities will be understated.

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