If the adjustment for accrued expenses is not recorded a. net income will be understated. b. revenues will be understated. c. net income will be overstated. d. expenses will be overstated.

The correct option is C

Explanation:

Accrued expenses is an accounting term that refers to an expense that is recognized on the books before it has been paid. So if accrued expenses are not recorded the business net income will be overstated.

Explanation: An accrued expense can be simply defined as an expense that was incurred but not yet paid or recorded. The following effect will reflect on a company's financial statement if the company fails to adjust for accrued expenses: its expenses will be understated and net income and stockholders' equity will be overstated. The net income will be overstated since the accrued expense is not recorded. Unrecorded accrued expense also means that the corresponding expense is not recorded and properly deducted from net income leading to overstatement of the net income.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

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