Effect of omitting adjusting entryAccrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year ended October 31. Indicate which items will be erroneously stated, because of the error, on (a) the income statement for the year and (b) the balance sheet as of October 31. Also indicate whether the items in error will be overstated or understated.

A company made a material error in calculating and reporting amortization expense in Year 1. The error was discovered in Year 2. The item should be reported as a prior period adjustment:

Which of the following statements is correct? a. prior year statements should always be restated for changes in accounting estimates. b. changes in accounting policy are always handled in the current or prospective period. C. correction of prior period error should be presented as an adjustment on the current income statement. d. a change from the deferral and amortization method to the immediate recognition method of accounting for defined benefit pension plans should be treated as a change in accounting policy.

Please help with the following question, need accurate and full answer.   What is the effect on liabilities, stockholder’s equity, revenues and net income if a company does not make an unearned revenue adjusting entry? Explain with suitable examples