If A Company Fails To Adjust For Accrued Revenues
If a company fails to record or adjust Accrued Revenues , then due to non recording of revenues account in Income Statement, the net income or net profit decreased or understated. On the hand, the value of assets in balance sheet is also understated. Actually, as we did not record t h e following adjusting entry of accrued revenues as s how n b elow: Accrued Revenues a/c XXX Revenues a/c XXX ...