question 18\nfailure to accrue revenues prior to preparing financial statements causes\na revenues to be…

question 18\nfailure to accrue revenues prior to preparing financial statements causes\na revenues to be understated and liabilities to be overstated.\nb assets and revenues to be overstated.\nc assets and revenues to be understated.\nd revenues to be understated and assets to be overstated.

question 18\nfailure to accrue revenues prior to preparing financial statements causes\na revenues to be understated and liabilities to be overstated.\nb assets and revenues to be overstated.\nc assets and revenues to be understated.\nd revenues to be understated and assets to be overstated.

Answer

Brief Explanations:

Accrued revenues are revenues that have been earned but not yet received or recorded. When not accrued before financial - statement preparation, revenues are not recognized, leading to understated revenues. Since accrued revenues are also related to assets (such as accounts receivable), not accruing them also understates assets.

Answer:

C. assets and revenues to be understated.