Forgetting to record depreciation expense during 2010l:
A) understates the debt/equity ratio.
B) understates the current ratio.
C) overstates the debt/equity ratio.
D) overstates the current ratio.

Question

Quizplus · Accepted Answer

Forgetting to record depreciation expense results in overstated net income and retained earnings, which increases equity. This leads to an understated debt/equity ratio.

Forgetting to Record Depreciation Expense During 2010l