Multiple Choice
On January 1,Needem,Inc.borrows $10,000 and agrees to repay the loan plus 8% interest in two years.If the proper adjustment is not made at the end of the first year,what will be wrong with the financial statements?
A) Nothing will be wrong with the financial statements.
B) Cash will be overstated on the balance sheet.
C) Expenses will be overstated on the income statement.
D) Liabilities will be understated on the balance sheet.
Correct Answer:
Verified
Correct Answer:
Verified
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