Which of the following errors occur when an accountant does not record the entry to adjust accrued wages?
A) Understatement of Accounts payable in the balance sheet.
B) Overstatement of operating expense in the income statement.
C) Understatement of Wages Expense account in the income statement.
D) Overstatement of total liabilities in the balance sheet.
E) Understatement of total assets in the balance sheet.

Question

Quizplus · Accepted Answer

If the entry to adjust accrued wages is not recorded, it will result in the understatement of the Wages Expense account in the income statement. This is because the expense has been incurred but not yet recorded. The other options are not affected by the failure to record the accrued wages adjustment.

Which of the Following Errors Occur When an Accountant Does