The adjustment for accrued wages was not done; this would cause

Name: The adjustment for accrued wages was not done; this would cause
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The adjustment for accrued wages involves recognizing wages that have been earned by employees but not yet paid. If this adjustment is not done, then the liability for these wages will be understated on the balance sheet. This will also lead to an understatement of expenses on the income statement, which in turn will lead to an overstatement of net income.

The Adjustment for Accrued Wages Was Not Done; This Would