The Accountant for Hobson Electrical Repair Company Failed to Make

question 18

Multiple Choice

The accountant for Hobson Electrical Repair Company failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year.Which of the following is TRUE?

• A) Total liabilities are overstated.
• B) Total liabilities are understated.
• C) Total assets are overstated.
• D) Total assets are understated.

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