Assume a company has a calendar year-end.

All else being equal, if the company doesnotrecord accrued revenue on 12/31/X1, what will be the effect on net income for 20X1?

Question 4Select one:

a.

Net income will be too high (overstated).

b.

Net incomewill be too low (understated).

c.

Net income will not be affected.