Which of the Following Is Correct

question 26

Multiple Choice

Which of the following is correct?

• A)If a company fails to record depreciation expense, net income and expenses are overstated.
• B)If a company fails to record depreciation expense, net income and assets are overstated.
• C)If a company overstates depreciation expense, net income is overstated and assets are understated.
• D)If a company fails to record depreciation expense, stockholders' equity, net income, and assets are understateD.If depreciation expense is not recorded, expenses are understated, and net income is overstated.Also, accumulated depreciation is understated because depreciation has not been added to it.Since accumulated depreciation reduces assets, understating accumulated depreciation will overstate assets.

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Definitions:

Foreign Aid

Financial or material assistance given by one country to another for purposes of relief, development, or to influence the receiving nation's policies.

Poverty Levels

Indicators that measure the economic status of individuals or populations, often defined by income thresholds below which persons are considered to be living in poverty.

False Imprisonment

The unlawful restraint of a person's freedom to move, without consent or legal justification.

Civic Center

A designated area in a city that is focused on civic activities and may include government buildings, theaters, and sports facilities.