If the adjustment for accrued wages is omitted, liabilities and expenses will be overstated.

Name: If the adjustment for accrued wages is omitted, liabilities and expenses will be overstated.
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If the adjustment for accrued wages is omitted, liabilities and expenses will be understated, not overstated. This is because the actual amount owed to employees has not been recognized as a liability, and the expense of the wages earned has not been recognized in the period in which they were earned.

If the Adjustment for Accrued Wages Is Omitted, Liabilities and Expenses