Multiple Choice
A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true?
A) It will understate assets by $9,000.
B) It will overstate assets and liabilities by $9,000.
C) It will understate net income by $9,000.
D) It will have no effect on income.
E) It will understate expenses and overstate net income by $9,000.
Correct Answer:
Verified
Correct Answer:
Verified
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