A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true?
A. It will understate assets by $9,000.
B. It will have no effect on income.
C. It will understate net income by $9,000.
D. It will understate expenses and overstate net income by $9,000.
E. It will overstate assets and liabilities by $9,000.
Answer: D
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