Which of the following misstatements would cause the net profit margin to be understated?
A)Recording the entire costs of supplies purchased,but not used,as an expense.
B)Failing to adjust for insurance expired.
C)Failing to accrue wages incurred but not yet paid for the current period.
D)Recording rent received but not yet earned

Question

Quizplus · Accepted Answer

Recording the entire costs of supplies purchased, but not used, as an expense would cause the net profit margin to be understated as it would increase the expenses without corresponding revenue.

Which of the Following Misstatements Would Cause the Net Profit