hard20 pts · first answer countsbookkeepingaccrualscut-off

A missed accrual at year end

Year-end legal fees of ₹1,50,000 were incurred but not accrued. The bill was booked as an expense in the next year. What is the effect on the year being closed?

A.Profit overstated, liabilities understated, next year hitB.Profit understated and liabilities overstated this yearC.Profit and liabilities correct; only the cash is wrongD.Profit overstated this year, but next year is unaffected

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A missed accrual at year end

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