The accountant of Hobson Electrical Repair Inc.failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year.Which of the following statements is true?

Question

Quizplus · Accepted Answer

If the $5,000 of unpaid salaries is not recorded, the total expenses will be understated. This is because salaries expense should be recorded for the last two weeks of the year, but it was not. As a result, expenses will be lower than they should be, and net income will be overstated.

The Accountant of Hobson Electrical Repair Inc