Failing to accrue expenses that have not been paid in cash will cause a company to report Understated liabilities and operating expenses Overstated net income and liabilities Understated liabilities and net income Overstated assets and net income QUESTION 6 The Allowance for Doubtful Accounts is necessary because when recording bad debt expense, it is not possible to know which specific accounts will not pay. O uncollectible accounts that are written off must be accumulated in a separate account. a liability results when a credit sale is made. O All of the above are true