Multiple Choice
Mattox Corporation had an unadjusted balance of $5,000 in Supplies. The actual balance was $190. The accountant failed to make the adjusting entry. What is the effect on the current year financial statements?
A) Net income is understated by $4,810.
B) Current assets are overstated by $4,810.
C) Current assets are understated by $5,000.
D) Retained Earnings is overstated by $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
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