Question 16 Ouestion 18 of 2 At the end of the current year, accountant for Keating Graphics, Inc. failed to make an accrual adjusting entry for wages due the company's employees of the last week of December The wages will be paid in January. Which of the following is one of the effects of this error? O A Total assets are overstated 3. Net income is understated OcTotal liabilities are overstated OD. Net income is overstated Question 17 Which of the following is NOT a "red flag in financial statement analysis? O A. Build up of merchandise inventory B. Inability to collect receivables oc. Decreased cash flow Od. Too little debt