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 would result in an overstatement of profit because the expense that should have been recorded is not recognized, therefore profits are higher than they should be.

Failure to Record a Liability Generally Results in