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Financial Accounting: effect of not accruing interest expense at end of current year

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20) The person keeping the financial records forgot to record the accrual of interest expense at the end of the current year. The result of this error is that:

Net Income Liabilities Assets

A) overstated understated understated
B) overstated overstated overstated
C) overstated understated no effect
D) no effect no effect no effect

Please select one of the following answers stated above.

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Solution Summary

The solution provides the correct answers to the question about the accrual of interest at year end.

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