Accrued salaries of $4,950 owed to employees for December 30 and 31 are not considered in preparing the financial statements for the year ended December 31, 2010 Indicate which items will be erroneously stated, because of the error, on (a) The income statement for December 2010 and (b) The balance ...

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Accrued salaries of $4,950 owed to employees for December 30 and 31 are not considered in preparing

Question:

Accrued salaries of $4,950 owed to employees for December 30 and 31 are not considered in preparing the for the year ended December 31, 2010. Indicate which items will be erroneously stated, because of the error, on
(a) The income statement for December 2010 and
(b) The as of December 31, 2010. Also indicate whether the items in error will be overstated or understated.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...