If the Total Amount That Should Have Been Debited to Insurance

question 30

Multiple Choice

If the total amount that should have been debited to insurance expense is mistakenly debited to prepaid insurance,what will be the effect on the financial statements for the year?

• A)Revenues will be overstated.
• B)Assets will be overstated.
• C)Stockholders' equity will be understated.
• D)Expenses will be overstated.

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