What Is the Effect on the Financial Statements When a Company

question 90

Multiple Choice

What is the effect on the financial statements when a company fails to accrue salaries expense at year-end?

• A)Net income is overstated and liabilities are understated.
• B)Expenses are understated and stockholders' equity is understated.
• C)Expenses and liabilities are both overstated.
• D)Net income is overstated and liabilities are not affected.

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