QUESTION 50 Big Service Company received its electric bill f

QUESTION 50 Big Service Company received its electric bill for December on December 31 but failed to make an entry.As a result O assets are overstated. O net income is overstated O liabilities are overstated. O owners\' equity is understated. O None of the above.

Solution

Answer : Net income will be overstated.

If expenses were not recorded in profit and loss account then income will be overstated.