Failure to record amounts earned for services provided to customers but NOT yet paid results in which of the following?

a. Net income being overstated

b. No effect on total assets

c. Stockholders' equity being overstated

d. Total assets being understated.

In Accounting, Total Assets represents all the resources a firm possesses from where the company expects to make a profit. It is the result from adding the company's non-current assets (realizable not in the current period) and the current assets (expected to be realized in the current period).

Thus, if the non-realizable amounts a company earns from providing services are not recorded, the total assets will be understated.

Failure to record amounts earned for services provided to customers but NOT yet paid results in which of the following? a. Net income being overstated b. No effect on total assets c. Stockholders' equity being overstated d. Total assets being understated.

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Failure to record amounts earned for services provided to customers but NOT yet paid results in which of the following?

a. Net income being overstated

b. No effect on total assets

c. Stockholders' equity being overstated

d. Total assets being understated.