Failure to record a liability will probably
A) result in overstated net income.
B) result in overstated total liabilities and shareholders' equity.
C) have no effect on net income.
D) result in overstated total assets.

Question

Quizplus · Accepted Answer

Failure to record a liability means that expenses or obligations are not recognized, leading to an understatement of expenses and an overstatement of net income.

Failure to Record a Liability Will Probably