If the Adjusting Entry for Depreciation Is Not Made

question 45

Multiple Choice

If the adjusting entry for depreciation is not made,

• A) assets will be understated.
• B) equity will be understated.
• C) net income will be understated.
• D) expenses will be understated.

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Definitions:

Declaration Date

Date on which the board of directors passes a resolution to pay a dividend.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a regular basis.

Corporate Dividend Payout

The part of a company's profits paid out to shareholders as dividends.

Reinvesting Dividends

The process of using dividend payments to purchase more shares of the same stock.