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:

Performance Appraisal

A structured assessment process where an employee's effectiveness and achievements are reviewed and communicated by supervisors.

Central Tendency Error

A bias in performance appraisal where evaluators unfairly rate most employees around the average or middle of the scale.

Establishment Stage

A phase in career development where individuals focus on achieving stability and success in their chosen profession.

Maintenance Stage

In behavior change models, the phase where new behaviors are sustained over time and relapse is avoided.