The accountant for Eagle Financial Services, Inc. failed to make an adjusting entry to record $3,000 of telephone expenses for the last two months of the year. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The failure to record the telephone expenses means that the liabilities (accounts payable or accrued expenses) are not recorded, thus understating the total liabilities.

The Accountant for Eagle Financial Services, Inc