Failure to make the appropriate adjustment to the Salary Expense account will:
A)Understate net income for December by $6,800.
B)Understate net income for January by $6,800.
C)Overstate total liabilities at December 31.
D)Overstate the balance in Cash at December 31.

Question

Quizplus · Accepted Answer

Failure to adjust the Salary Expense account will result in expenses being recorded in the wrong period, causing net income for January to be understated by the amount of the unrecorded expense ($6,800).

Failure to Make the Appropriate Adjustment to the Salary Expense