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As of January 31, Hudson Corporation owes $600 to U-Rent-It

As of January 31, Hudson Corporation owes $600 to U-Rent-It for equipment used during January. If no adjustment is made for this item at January 31, how will Hudson's financial statements be affected?
1 Cash will be overstated at January 31.
2. Net income for January will be overstated.
3. Stockholders' equity will be understated.
4. The financial statements will be accurate since the $600 does not have to be paid yet.

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As of January 31, Hudson Corporation owes $600 to U-Rent-It for equipment used during January. If no adjustment is made for this item at January 31, ...

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As of January 31, Hudson Corporation owes $600 to U-Rent-It for equipment used during January. If no adjustment is made for this item at January 31, how will Hudson's financial statements be affected?
1 Cash will be overstated at January 31.
2. Net income for January will be overstated.
3. Stockholders' equity will be understated.
4. The financial statements will be accurate since the $600 does not have to be paid yet.

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