Business Accounting and Bookkeeping

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


Wiki User

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.