. An entity is a resort located in Boracay. During December 2019, PICPA held an annual conference at the resort. The charges related to the conference totaled P4,000,000, of which 25% had been paid. The entity failed to make the appropriate adjusting entry on December 31, 2019 for the uncollected balance. Which of the following statements is true? A. Assets are understated by P3,000,000 B. Equity is overstated by P3,000,000 C. Equity is understated by P1,000,000 D. Assets are overstated by P1,000,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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1. An entity is a resort located in Boracay. During December 2019, PICPA held an annual conference at the resort. The charges related to the conference totaled P4,000,000, of which 25% had been paid. The entity failed to make the appropriate adjusting entry on December 31, 2019 for the uncollected balance. Which of the following statements is true? A. Assets are understated by P3,000,000 B. Equity is overstated by P3,000,000 C. Equity is understated by P1,000,000 D. Assets are overstated by P1,000,000
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