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:

Interim Statements

Financial reports covering a period of less than a full fiscal year, typically quarterly, intended to provide an update on an organization's financial position.

Financial Position

A summary of the resources, obligations, and worth of an entity at a specific point in time, usually reflected in a balance sheet.

Year-End Financial Statements

Reports prepared at the end of an accounting period, summarizing the financial status and operating results of a business.

Management

involves the activities of setting the strategy of an organization and coordinating the efforts of its employees or volunteers to achieve its objectives.