Business Accounting and Bookkeeping

If an adjusting entry is not made for an accrued revenue what will be overstated?

Answer

Wiki User
09/04/2010

accrued revenue is acc. receivable control, which is an asset. if it is not made, the assets will decrease. Eq=A-L, A drop, and then Eq will decrease.

accrued revenue can be category of sales revenue too, so if sales drop, P=I-Ex,

P will decrease

the only thing will increase is L and Ex when comparing with A P or I.