For each of the following oversights, state what total assets will be
-Failure to record accrued interest revenue on a loan receivable.
A) understated (U)
B) overstated (O)
C) no effect (NE)

Question

Quizplus · Accepted Answer

Failing to record accrued interest revenue on a loan receivable means the company has not recognized revenue that it has earned but not yet received, leading to an understatement of both assets (due to the unrecorded receivable) and revenue.

For Each of the Following Oversights, State What Total Assets