Question: At the end of the current year, the accountant for Navistar Graphics, Inc. forgot to make an adjusting entry to accrue wages payable to the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is one of the effects of this error?Answer
- Net income is overstated (this one we think is the answer)
- Liabilities are overstated.
- Net income is understated.
- Expenses are overstated.