Multiple Choice
While reviewing the books of Edberg Pest Control Service you discover that no adjusting entry was made for estimated bad debts traceable to sales in 2014 (the company's first year of operation) . Assuming this error is not corrected, which of the following is true at year-end 2014?
A) Assets are understated, profit is overstated
B) Liabilities are overstated, profit is understated
C) Assets are correct, profit is overstated
D) Assets are overstated, profit is overstated
Correct Answer:
Verified
Correct Answer:
Verified
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