Which of the following errors causes net income to be understated?

Question

Quizplus · Accepted Answer

Revenue that has been earned but not recorded will overstate net income.The failure to record an expense,such as Salaries and Wages Expense or Depreciation Expense,will understate expenses and,as a result,overstate net income.The collection of an accounts receivable that is not recorded will understate Cash and overstate Accounts Receivable;as such,it would have no impact on net income.

Which of the Following Errors Causes Net Income to Be