Depreciation of equipment was recorded twice this period. This would:
A) overstate expenses and overstate assets.
B) overstate expenses and understate assets.
C) understate expenses and overstate assets.
D) understate assets and understate assets.

Question

Quizplus · Accepted Answer

Recording depreciation twice would lead to an overstatement of expenses (since depreciation expense is higher than it should be) and an understatement of assets (since the asset's book value is reduced more than it should be).

Depreciation of Equipment Was Recorded Twice This Period