Failure to record an accrued liability for wages earned by employees causes a company to:
A)understate net income.
B)overstate assets.
C)overstate liabilities.
D)overstate stockholders' equity.

Question

Quizplus · Accepted Answer

Failure to record an accrued liability for wages results in understating expenses, which overstates net income and consequently overstates stockholders' equity.

Failure to Record an Accrued Liability for Wages Earned by Employees