Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 13)
If a company fails to recognize accrued salaries at the end of the accounting period, what is the effect on the financial statements?
Expenses and liabilities will be overstated.
Expenses and liabilities will be understated.
Assets will be overstated, and equity will be understated.
Assets and equity will be understated.
Explanation
The expenses and liabilities would be understated.
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