There was no accrual for interest on a promissory note receivable;this error would cause:
A)the period end assets to be overstated.
B)the period end liabilities to be understated.
C)the period's net income to be overstated.
D)the period's net income to be understated.

Question

Quizplus · Accepted Answer

The absence of an accrual for interest on a promissory note receivable means that interest revenue is not recorded, leading to an understatement of the period's net income.

There Was No Accrual for Interest on a Promissory Note