Failure to record depreciation expense at the end of an accounting period results in
A)understated income.
B)understated assets.
C)overstated expenses.
D)overstated assets.
E)All of these choices are correct.

Question

Quizplus · Accepted Answer

Failure to record depreciation expense at the end of an accounting period results in an overstatement of assets since the fixed asset account (which includes accumulated depreciation) will not reflect the decrease in value caused by wear and tear or obsolescence.

Failure to Record Depreciation Expense at the End of an Accounting