The accountant for the Grassroots Company forgot to make an adjusting entry to record revenue earned but not yet billed to customers. The effect of this error is:
A) An overstatement of assets and of profit offset by an understatement of equity.
B) An overstatement of profit and an understatement of assets.
C) An understatement of assets, profit, and equity.
D) An overstatement of liabilities offset by an understatement of equity.
Correct Answer:
Verified
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