Because of time delays between receiving inventory and making the journal entry
A)liabilities are usually understated
B)liabilities are usually overstated
C)liabilities are usually correctly stated
D)liabilities are not affected

Question

Quizplus · Accepted Answer

Liabilities are usually understated because the delay in making the journal entry means that the obligation to pay for the received inventory is not immediately recorded, thus not reflecting the true amount owed at that moment.

Because of Time Delays Between Receiving Inventory and Making the Journal