A d window cleaning performed 450 of services but has not, Accounting Basics

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A d window cleaning performed 450 of services but has not

Question: A & D Window Cleaning performed $450 of services but has not yet billed customers for the month. If A & D fails to record the adjusting entry, what is the impact on the financial statements?

a. balance sheet: assets understated; equity overstated income statement: expense understated

b. balance sheet: liabilities overstated; equity understated income statement: revenues understated

c. balance sheet: assets overstated, equity understated income statement: expenses understated

d. balance sheet: assets understated, equity understated income statement: revenues understated

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Accounting Basics: A d window cleaning performed 450 of services but has not

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