Southern Company's accountant failed to accrue as of 12/31/16 some employee fringe benefit program expenses that were incurred in 2016 and that will be paid in 2017. The result of this omission is to:

Question

Quizplus · Accepted Answer

The omission of accruing expenses results in understating 2016 expenses, which leads to an understatement of current liabilities as the expenses were not recorded as liabilities.

Southern Company's Accountant Failed to Accrue as of 12/31/16 Some