If a department store fails to make the entry to accrue the finance charges due from customers
A) accounts receivable will be overstated.
B) interest revenue will be understated.
C) interest expense will be overstated.
D) interest expense will be understated.

Question

Quizplus · Accepted Answer

Failing to accrue finance charges due from customers results in not recognizing the revenue earned from these charges, thus understating interest revenue.

If a Department Store Fails to Make the Entry to Accrue