The failure to record an accrued expense will result in overstatement of?

Expense is understated as

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Expense (Dr)

Accrued Expense (Cr)

By ignoring expense, you are understating them.

Answer A is right.

Option B

b

A is correct Answer, on based on equation (Working capital = current assets - current liabilities)

A is the right answer because failure to record accrued expense means liability is not entered in journal hence working capital will appreciate. Note: Working capital = Current Aseest - Current liability.

Accrued expense is a payable. Non recognition of such will result to understatement of payable and overstatement of working capital, hence my answer is A. Remember that working capital is current asset less current liability. 

A is the right anwer

A

correct answer is b 

A 

Because working capital =current liabilties

b - is the answer