The Omission of the Adjusting Entry to Record Depreciation Expense

question 133

Multiple Choice

The omission of the adjusting entry to record depreciation expense will result in an

• A) overstatement of assets and an overstatement of owners' equity.
• B) understatement of assets and an understatement of owner's equity.
• C) overstatement of assets and an overstatement of liabilities.
• D) overstatement of liabilities and an understatement of owners' equity.

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Definitions:

Manufacturing Business

An enterprise involved in the industrial production of goods, transforming raw materials into finished products on a large scale.

Personal Selling

A marketing strategy where salespersons use face-to-face interaction to sell products or services directly to consumers.

Firms

Businesses or corporations that provide goods or services to consumers or other businesses in an effort to generate profit.

Salesperson Evaluation

Salesperson Evaluation involves assessing the performance of a salesperson based on criteria such as sales volume, customer satisfaction, and goal achievement.