Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 27)
If a company fails to accrue interest income earned but not yet received at year-end, what is the impact on the financial statements?
Assets and equity are overstated.
Assets and revenue are understated.
Assets and liabilities are understated.
Expenses and liabilities are overstated.
Explanation
This results in lower assets and revenue.
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