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Lubov Fominskaja [6]
2 years ago
12

Why do you think a company could permit liability accounts to be overstated

Social Studies
1 answer:
xxMikexx [17]2 years ago
4 0

A company could permit asset accounts to be understated when there are measurement errors, accounting errors, and improper implementation of accounting principles and policies.

A company could permit liability accounts to be overstated if liabilities are higher. This might be due to the over-accruing of expenses by the company.

Overstatement of income is more likely. Normally an organization does misstatements to improve profitability.

This is done by either expenses understatement or revenue overstatement.

Learn more about permits here

brainly.com/question/1392431

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