Southern companys accountant failed to accrue as of 123108, Ask an Expert

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Southern Company's accountant failed to accrue as of 12/31/08 some employee fringe benefit program expenses that were incurred in 2008 and that will be paid in 2009. The result of this omission is to:

a. overstate the current ratio at 12/31/08 and overstate ROI and ROE for the year ended 12/31/08.

b. overstate the current ratio at 12/31/08 and understate ROI and ROE for the year ended 12/31/08.

c. understate the current ratio at 12/31/08 and understate ROI and ROE for the year ended 12/31/08.

d. not affect the current ratio at 12/31/08 but to overstate ROI and ROE for the year ended 12/31/08.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M953825

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