Failure to prepare an adjusting entry at the end of the period record an accrued expense would cause: A) net income to be understated. B) an overstatement of expenses and an overstatement of liabilities. C) an overstatement of assets and an overstatement liabilities. D) an understatement of expenses and an understatement of liabilities 13. In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure? A) LIFO method B) FIFO method C) Average cost method D) Need more information to answer On August 15^th, 2017. Kinney Industries signs as200,000, 8%, twelve-month note payable. Which of the following entries correctly records the accrued interest on December 31^st, 2017? A) Interest Expense $5, 333.33 Interest Payable $5, 333.33 B) Interest Expense $6,000 Interest Payable $6,000 Interest payable $10,000 D) Interest Expense $16,000 Interest Payable $16,000 If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements? A) Expenses will be overstated and net income and stockholders' equity will be under-stated. B) Failure to make an adjustment does not affect the financial statements. C) Assets will be overstated and net income and stockholders' equity will be understated. D) Assets will be overstated and net income and stockholders' equity will be overstated