Due to an oversight,a company did not make an adjusting entry for accrued and unpaid employee wages of $24,000 on December 31.This oversight would:
A)Understate net income by $24,000.
B)Overstate net income by $24,000.
C)Have no effect on net income.
D)Overstate assets by $24,000.
E)Understate assets by $24,000.

Question

Quizplus · Accepted Answer

The oversight would overstate net income by $24,000 because the expense for the unpaid wages was not recorded, leading to higher reported income.

Due to an Oversight,a Company Did Not Make an Adjusting