Due to an Oversight,a Company Did Not Make an Adjusting

question 189

Multiple Choice

Due to an oversight,a company did not make an adjusting entry for accrued and unpaid employee wages of $24,000 on December 31.This oversight would:

• A)Understate net income by $24,000.
• B)Overstate net income by $24,000.
• C)Have no effect on net income.
• D)Overstate assets by $24,000.
• E)Understate assets by $24,000.