The accounting department forgot to adjust for interest on the note payable.This error would cause:
A)the period end assets to be understated.
B)the period end liabilities to be understated.
C)the period's net income to be understated.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

The interest on the note payable is a liability. If it is not adjusted, the liabilities will be understated.

The Accounting Department Forgot to Adjust for Interest on the Note