an accountant failed to record the adjusting entry for accrued revenues. how does this error affect the…

an accountant failed to record the adjusting entry for accrued revenues. how does this error affect the balance sheet?\na. the assets at the end of the period will be overstated.\nb. the assets at the end of the period will be understated.\nc. the liabilities at the end of the period will be understated.\nd. the liabilities at the end of the period will be overstated.

an accountant failed to record the adjusting entry for accrued revenues. how does this error affect the balance sheet?\na. the assets at the end of the period will be overstated.\nb. the assets at the end of the period will be understated.\nc. the liabilities at the end of the period will be understated.\nd. the liabilities at the end of the period will be overstated.

Answer

Brief Explanations:

When accrued revenues are not recorded, the asset (e.g., Accounts Receivable) that should have been recognized is missing. Assets are understated as a result. Liabilities are not affected by accrued revenue entries.

Answer:

B. The assets at the end of the period will be understated.