24. What is the effect on the financial statements when a company fails to accrue salaries expense at year end? A. Net income is overstated and liabilities are understated. B. Expenses are understated and stockholders' equity is understated. C. Expenses and liabilities are both overstated. D. Net income is overstated and liabilities are properly reported. 24. What is the effect on the financial statements when a company fails to accrue salaries expense at year end? A. Net income is overstated and liabilities are understated. B. Expenses are understated and stockholders' equity is understated. C. Expenses and liabilities are both overstated. D. Net income is overstated and liabilities are properly reported