Services were performed but not billed. What effect will this have on the income statement if an adjusting entry is not made? a. Liabilities will be understated. b. Expenses will be overstated. c. Net income will be understated. d. Revenues will be overstated.
Services were performed but not billed. What effect will this have on the income statement if an adjusting entry is not made? a. Liabilities will be understated. b. Expenses will be overstated. c. Net income will be understated. d. Revenues will be overstated.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 12DQ: Describe the effect on the financial statements when an adjustment is prepared that records (a)...
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Services were performed but not billed. What effect will this have on the income statement if an adjusting entry is not made?
a. Liabilities will be understated.
b. Expenses will be overstated.
c. Net income will be understated.
d. Revenues will be overstated.
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