on april 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in revenue. if no adjusting entry

Question

1 year ago

15

is made at year-end, how will the financial statements be affected?

1 answer:

Scilla [17] · Answer 1 · 2024-03-27T05:37:44+03:00

if no adjusting entry is made at year-end, the financial statements will be affected:

Net - income: will be overstated

Assets: will be overstated

<h3>What are Financial statements?</h3>

The financial actions and position of a company, individual, or other entity are formally recorded in financial statements (also known as financial reports).
The presentation of pertinent financial data is organized and presented in an understandable style.
The purpose of financial statements is to give information about an organization's financial situation, performance, and changes in financial position that may be used by a variety of users to make financial decisions.
Financial statements must be clear, pertinent, dependable, and similar.
The financial condition of an organization is directly tied to the reported assets, liabilities, equity, income, and expenses.

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