Which of the following will happen if the accrual adjustment entry is not made to record an expense incurred but not yet recorded? a. Expenses will be understated and liabilities will be overstated. b. Both expenses and liabilities will be understated. c. Expenses will be overstated and liabilities will be understated. d. Both expenses and liabilities will be overstated.

b. Both expenses & liabilities will be understated.

Explanation:

Accrual System of Accounting states that transactions should be recorded when they are entered into, irrespective of their cash settlement occurred r not.

Under Accrual Accounting System : Expense incurred but not yet paid , is an Outstanding Expense. It is recorded as an expense & a liability to be paid.

Journal Entry : Expense Dr to Expense Outstanding Cr

So, Not recording this 'Outstanding Expense' entry : leads to understatement of both expense & liability of that accounting period.

answer; a large down payment,a longer term loan, would result in a lower monthly payment;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know