If a company fails to adjust for accrued expenses, what effect will this have on that month's financial statements?
a) Expenses will be understated, and net income will be overstated.
b) Expenses will be overstated, and net income will be understated.
c) Expenses will be understated, and net income will be understated.
d) Expenses will be overstated, and net income will be overstated.
