Because of time delays between receiving inventory and making the journal entry
A) liabilities are usually understated
B) liabilities are usually overstated
C) liabilities are usually correctly stated
D) none of the above

Question

Quizplus · Accepted Answer

When there are time delays between receiving inventory and making the journal entry, the liabilities are usually understated because the obligation to pay for the inventory has not yet been recorded in the accounts payable.

Because of Time Delays Between Receiving Inventory and Making the Journal