The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would:
A) understate the liabilities.
B) overstate the liabilities.
C) overstate net income.
D) None of these is correct.

Question

Quizplus · Accepted Answer

Including the entire pay period for accrued wages, even the part that occurs next month, would result in recording more liabilities than should be recognized in the current period, thus overstating the liabilities.

The Adjustment for Accrued Wages Included the Entire Pay Period