The accountant of Skyscrapers Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following statements is true?
A)The total liabilities will be overstated.
B)The equity will be understated.
C)The total assets will be overstated.
D)The total assets will be understated.

Question

Quizplus · Accepted Answer

Failing to record depreciation expense means that accumulated depreciation is not increased, causing total assets to be overstated since the asset's book value is not reduced.

The Accountant of Skyscrapers Architectural Services Failed to Make an Adjusting