If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial...

Question

Question

Answer 1

Answer #1

The adjustment for accrued revenues is

Accrued revenues A/C ....... Dr $8,600

TO Income A/C $8,600

Here the accrued income will be posted on the asset side of balance sheet and Income will be posted on the credit side of Income statement.

So by omission of Accrued revenues, Income will be understated and accounts receivable will be under stated by $8,600

Ans will be

A. Net income will be understated by $8,600

Answer 2

Similar Homework Help Questions

If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial...

If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.
If an adjustment for accrued income is omitted from the financial reports the effect is: Select...

If an adjustment for accrued income is omitted from the financial reports the effect is: Select one: O a. assets are overstated; profit is understated. O b. assets are understated; profit is overstated. O c. assets are overstated; profit is overstated. O d. assets are understated profit is understated
If an adjustment for depreciation is omitted from the financial reports the effect is: Select one:...

If an adjustment for depreciation is omitted from the financial reports the effect is: Select one: O a. Assets are understated; profit is understated O b. Assets are overstated; profit is understated O c. Assets are understated; profit is overstated O d. Assets are overstated; profit is overstated

If the following adjusting entry is omitted, what effect will it have on the financial statements?...

If the following adjusting entry is omitted, what effect will it have on the financial statements? 1,900 Unearned Rent Rent Revenue 1,900 a. Revenues will be overstated by $1,900. O b. There will be no effect on net income. c. There will be no effect on liabilities. d. Revenues will be understated by $1,900.
If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity...

If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity overstated, and revenues understated. b. assets will be understated, equity understated and revenue understated. c. assets will be overstated, equity overstated, and revenues understated. d. liabilities will be overstated, equity understated and revenues understated.
If the following adjusting entry is omitted, what effect will it have on net income? 4,300...

If the following adjusting entry is omitted, what effect will it have on net income? 4,300 Depreciation Expense Accumulated Depreciation 4,300 O a. Net income will be understated by $4,300. O b. It will have no effect on net income. O c. Net income will be overstated by $8,600. O d. Net income will be overstated by $4,300. The adjusting entry to record accrued expenses O a. includes a debit to a payable account. O b. is the same journal...

During the adjusting process two transactions were neglected or omitted. The first is for unearned rent...

During the adjusting process two transactions were neglected or omitted. The first is for unearned rent revenue of which $415 was earned during the period, the second was for accrued interest payable of which $275 is owed for the period. As a result of these omissions During the adjusting process two transactions were neglected or omitted. The first is for unearned rent revenue of which $415 was earned during the period, the second was for accrued interest payable of which...
Question 7 4 points There was no adjustment made for accrued wages on 31 December. This...

Question 7 4 points There was no adjustment made for accrued wages on 31 December. This was an error. The amount of wages eamed in December but not payable until the first week in January following year was $600. If this error is not discovered before the financial statements are prepared: assets as of 31 December will be overstated. liabilities as of 31 December will be overstated. net income will be overstated by $600. net income will be understated by...
If the adjustment for depreciation is not recorded a. assets are understated. O b. net income...

If the adjustment for depreciation is not recorded a. assets are understated. O b. net income is overstated. c. net income is correctly stated. O d. revenues are overstated.

Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1)...

Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Accrued Revenues Assets Understated Revenues Understated (b) Store supplies of $160 are on hand. The supplies account shows a...