In adjusting and closing the books of Sally Smith Company at the end of the fiscal year,
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Question:
In adjusting and closing the books of Sally Smith Company at the end of the fiscal year, no provision was made for accrued sales salaries expense of $600. The effect of this omission was as follows:
A. the assets on the balance sheet were the same regardless of the omission.
B. stockholders’ equity on the balance sheet is understated by $600.
C. the liabilities reported on the balance sheet are overstated by $600.
D. net income for the year was understated by $600.
E. None of the preceding answers is correct.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
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