Under accrual-basis accounting,if a company fails to record a sale on account:

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Failing to record a sale on account under accrual-basis accounting means that the revenue from the sale is not recognized, leading to an understatement of revenue. Additionally, because the receivable that should have been recorded is not, assets are also understated. Net income is affected because it is calculated based on revenues and expenses, so if revenue is understated, net income will also be incorrect.

Under Accrual-Basis Accounting,if a Company Fails to Record a Sale