Wages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded.
a. Assets and owner's equity overstated
b. Assets and owner's equity understated
c. Assets overstated and owner's equity understated
d. Assets understated and owner's equity overstated
e. Liabilities and owner's equity overstated
f. Liabilities and owner's equity understated
g. Liabilities overstated and owner's equity understated
h. Liabilities understated and owner's equity overstated
Ans: h. Liabilities understated and owner's equity overstated
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