Failure to record a liability generally results in
A)an understatement of profit.
B)an understatement of current ratio.
C)an overstatement of profit.
D)an overstatement of assets.

Question

Quizplus · Accepted Answer

Failure to record a liability means that expenses associated with that liability have not been recognized. This would result in an overstatement of profit, as expenses that should have been recognized are not being subtracted from revenue.

Failure to Record a Liability Generally Results in