At the End of the Current Year, the Required Adjusting

question 10

Multiple Choice

At the end of the current year, the required adjusting entry for depreciation on equipment was omitted.Which of the following statements is true regarding the current year's financial statements?

• A)Profit will be overstated.
• B)Total assets will be understated.
• C)The statement of financial position and income statement will be misstated but the statement of changes in equity will be correct.
• D)Retained earnings will be understated.

---

Definitions:

Customer Account

An account representing the ongoing transactions, balances, and records of purchases and payments between a company and its customer.

Customer Account

An account maintained by a business for each customer to track transactions, balances, and other relevant information.

Supplier's Account

An account kept by a business to record transactions (like purchases and payments) related to a specific supplier.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other supplies on credit.