If a Company Mistakenly Forgot to Record Depreciation on Office

question 64

Multiple Choice

If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:

• A) Assets overstated and equity understated.
• B) Assets and equity both understated.
• C) Assets overstated, net income understated, and equity overstated.
• D) Assets, net income, and equity understated.
• E) Assets, net income, and equity overstated.

---

Definitions:

Rectangle

In programming, particularly in graphics, a shape defined by its width, height, and position, often used to draw and manipulate graphical elements.

Constructors

Special methods in object-oriented programming that are called to initialize new objects with specific initial values or states.

Employee

Generally refers to an individual who works part-time or full-time under a contract of employment, typically earning a salary or wage in exchange for their labor.

UML

Unified Modeling Language, a standardized modeling language used in software engineering to visualize the design of a system.