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<p>A. Working Capital</p> <p>B. Expenses</p> <p>C. Assets</p>
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
