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9 May, 19:50

The adjusting entry to adjust supplies was omitted at the end of the year. This would affect the income statement by having a. expenses understated and therefore net income overstated b. revenues understated and therefore net income understated c. expenses understated and therefore net income understated d. expenses overstated and therefore net income understated

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  1. 9 May, 23:46
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    The answer is: A) expenses understated and therefore net income overstated

    Explanation:

    Supplies are an essential part of the Cost of Goods Sold (COGS), so if they weren't adjusted at the end of the year, the COGS will be lower than they should be.

    If COGS are artificially low, then the gross income (and net income) will be artificially high.
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