Question
Born of Frustration, Corp. provides services to its customers on account. Accrued revenue at the end of the annual accounting period totaled $6,250, but the
Born of Frustration, Corp. provides services to its customers on account. Accrued revenue at the end of the annual accounting period totaled $6,250, but the firm forgot to make an adjusting entry for accrued revenue at the end of the accounting period. Which of the following is true about the period end financial statements?
a. | None of the answers given are correct. | |
b. | Liabilities will be overstated and Stockholders Equity will be understated. | |
c. | Liabilities will be understated and Stockholders Equity will be overstated. | |
d. | Assets and Stockholders Equity will be overstated. | |
e. | Assets and Stockholders Equity will be understated. |
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