Failure to make an adjusting entry to recognize accrued salaries payable would cause which of the following? (Hint: See Tip for how to analyze the effects.)
a. An understatement of expenses, liabilities, and stockholders’ equity.
b. An understatement of expenses and liabilities and an overstatement of stockholders’ equity.
c. An overstatement of assets and stockholders’ equity.
d. An overstatement of assets and liabilities.