Failure to record an accrued liability causes a company to:
A) overstate assets
B) overstate liabilities
C) overstate owners' equity
D) overstate expenses

Name: Failure to record an accrued liability causes a company to: A) overstate assets B) overstate liabilities C) overstate owners' equity D) overstate expenses
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Question

Quizplus · Accepted Answer

Failure to record an accrued liability means that the company has not recognized an obligation that should decrease owners' equity, thus overstating it.

Failure to Record an Accrued Liability Causes a Company To