Year-end net assets would be overstated and current expenses would be understated as a result of failure to record which of the following adjusting entries?
A) Expiration of prepaid insurance
B) Depreciation of fixed assets
C) Use of supplies
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All of these adjusting entries affect the accuracy of a company's net assets and expenses. Failure to record any of these adjusting entries would result in overstatement of year-end net assets and understatement of current expenses. Therefore, the correct answer is D.

Year-End Net Assets Would Be Overstated and Current Expenses Would