Question: A & D Window Cleaning performed $450 of services but has not yet billed customers for the month. If A & D fails to record the adjusting entry, what is the impact on the financial statements?
a. balance sheet: assets understated; equity overstated income statement: expense understated
b. balance sheet: liabilities overstated; equity understated income statement: revenues understated
c. balance sheet: assets overstated, equity understated income statement: expenses understated
d. balance sheet: assets understated, equity understated income statement: revenues understated