if adjusting entries are not prepared, which financial statements are misstated? a. statement of retained…

Brief Explanations:

Adjusting entries affect revenues, expenses, assets, and liabilities. The income statement reports revenues and expenses, the balance - sheet reports assets, liabilities, and equity, and the statement of retained earnings is affected by net income (from the income statement). So, if adjusting entries are not prepared, all three statements will be misstated.

Answer:

D. income statement, balance sheet and statement of retained earnings