1. Why would accrued expenses need to be recorded as a liability at the end of the period? 2. When making adjusting entries, are there other accrued expenses besides wages payable in a typical business that should be recorded? 3. What are two effects on the income statements that would result if accrued expenses were not recorded? 4. If this were a sole proprietorship, would the owners equity be over-stated or under-stated? Why? 5. If you worked as a loan officer for a bank and were considering making a loan to a company whose books reflected no year-end accrued expenses such as wages payable, what questions might you ask the companys accountant?