At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted.Which of the following statements is true?
A)Salaries and Wages Expense for the year is overstated.
B)Liabilities at the end of the year are understated.
C)Assets at the end of the year are understated.
D)Stockholders' equity at the end of the year is understated.

Question

Quizplus · Accepted Answer

When the adjusting entry for accrued salaries is omitted, the liabilities are understated because the company has not recorded the salaries payable that it owes to employees.

At the End of the Fiscal Year, the Usual Adjusting