Impact of the error on the 2021 financial statements

Reference no: EM133661714

Question: In 2022, Illini found that it had forgotten to record the amortization of discount on bonds payable for its interest payments in 2021. Interest expense for 2021 was equal to the cash outflow for interest. Which one of the following is incorrect regarding the impact of the error on the 2021 financial statements? 1 point The interest expense is understated. The ending balance in discount on bonds payable is overstated. Net income is overstated. Net carrying value of the bonds is overstated.

Reference no: EM133661714

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