Due to an oversight,the company bookkeeper made no 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) Have no effect on net income.
C) Overstate net income by $24,000.
D) Overstate liabilities.
E) Have no effect on the balance sheet.

Question

Quizplus · Accepted Answer

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

Due to an Oversight,the Company Bookkeeper Made No Adjusting Entry