Failure to record depreciation expense during a year:
A)understates net income.
B)overstates total assets.
C)overstates total debt.
D)overstates contributed capital.

Question

Quizplus · Accepted Answer

Failing to record depreciation expense results in not reducing the book value of the asset for that year, which means the total assets reported on the balance sheet will be higher than they should be.

Failure to Record Depreciation Expense During a Year