If an adjusting entry is not made for an accrued revenue,
A) assets will be overstated.
B) expenses will be understated.
C) stockholders' equity will be understated.
D) revenues will be overstated.

Question

Quizplus · Accepted Answer

If an adjusting entry for accrued revenue is not made, revenues and thus net income will be understated, leading to an understatement of stockholders' equity.

If an Adjusting Entry Is Not Made for an Accrued