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.

Question

Quizplus · Accepted Answer

Failure to record depreciation expense at the end of an accounting period results in overstated assets. This is because depreciation expense reduces the value of assets over time, and not recording it results in an overstatement of the asset's value on the balance sheet.

Failure to Record Depreciation Expense at the End of an Accounting