The accountant for We Deliver, Inc. forgot to make an adjusting entry at the end of the year to record the salaries owed to employees for working the last week of the year. What effect did this omission have on the company's financial statements? Group of answer choices A. Overstated assets and retained earnings. B. Understated assets and retained earnings. C. Overstated liabilities and understated retained earnings. D. Understated liabilities and overstated retained earnings.
The accountant for We Deliver, Inc. forgot to make an adjusting entry at the end of the year to record the salaries owed to employees for working the last week of the year. What effect did this omission have on the company's financial statements? Group of answer choices A. Overstated assets and retained earnings. B. Understated assets and retained earnings. C. Overstated liabilities and understated retained earnings. D. Understated liabilities and overstated retained earnings.
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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The accountant for We Deliver, Inc. forgot to make an adjusting entry at the end of the year to record the salaries owed to employees for working the last week of the year. What effect did this omission have on the company's financial statements?
Group of answer choices
A. Overstated assets and retained earnings .
B. Understated assets and retained earnings.
C. Overstated liabilities and understated retained earnings.
D. Understated liabilities and overstated retained earnings.
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