4 of 24 2 Marks If a company's bookkeeper forgets to record the journal entry to accrue interest expense, then: O A net earnings will be understated and liabilities will be overstated. O B. net earnings will be overstated and liabilities will be understated. OC, both net earnings and liabilities will be overstated. OD both net earnings and liabilities will be understated. Unsure 5 of 24 2 Marks An advantage to financing the acquisition of assets with debt is that O A interest does not have to be paid until the maturity date. OB. dividends are tax deductible OC interest is tax deductible OD. dividends reduce retained earnings whereas interest expense dods not reduce retained earnings. Unsure