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 expenses.
B) An overstatement of revenues.
C) An understatement of assets.
D) An overstatement of liabilities.
E) An overstatement of assets.

Question

Quizplus · Accepted Answer

Failure to record depreciation will result in an overstatement of assets since depreciation reduces the value of assets over time. Therefore, if no depreciation is recorded, the assets will be overstated.

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