Question: Which of the following errors could result in an overstatement of both current assets and stockholders equity? a. An understatement of accrued sales expenses. b.

Which of the following errors could result in an overstatement of both current assets and stockholders’ equity?

a. An understatement of accrued sales expenses.

b. Noncurrent note receivable principal is misclassified as a current asset.

c. Annual depreciation on manufacturing machinery is understated.

d. Holiday pay expense for administrative employees is misclassified as manufacturing overhead.

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