If an adjustment for accrued income is omitted from the financial reports the effect is: Select...

Question

Question

If an adjustment for accrued income is omitted from the financial reports the effect is: Select one: O a. assets are overstat

Answer 1

Answer #1

The following adjusting entry is made to record the accrual of income:

If accrual income is not recorded at the end of the accounting period, it will have the following effects:

(i) Assets will be understated.

(ii) Profit will be understated.

Correct option is d.

Kindly comment if you need further assistance. Thanks

Answer 2

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