A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true? a. It will have no effect on income. b. It will understate expenses and overstate net income by $9,000. c. It will overstate assets and liabilities by $9,000. d. It will understate net income by $9,000.
A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true? a. It will have no effect on income. b. It will understate expenses and overstate net income by $9,000. c. It will overstate assets and liabilities by $9,000. d. It will understate net income by $9,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10P: At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2...
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A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true?
a.
It will have no effect on income.
b.
It will understate expenses and overstate net income by $9,000.
c.
It will overstate assets and liabilities by $9,000.
d.
It will understate net income by $9,000.
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