If the accountant failed to make an adjusting entry at the end of the period to record depreciation for the period, the omission will cause:
A)An overstatement of assets.
B)An overstatement of expenses.
C)An understatement of assets.
D)An overstatement of liabilities.
E)An overstatement of revenues.

Question

Quizplus · Accepted Answer

Failing to record depreciation means that accumulated depreciation is not increased, leading to an overstatement of the asset's book value.

If the Accountant Failed to Make an Adjusting Entry at the End