MissTake Corp

question 41

Multiple Choice

MissTake Corp.is a small private corporation that does not prepare comparative statements.At the end of their 2017 fiscal year, it was discovered that the 2016 depreciation expense on their computer equipment had been incorrectly debited to maintenance expense.How should MissTake deal with this situation?

• A)Prepare an adjusting entry to debit depreciation expense and credit maintenance expense.
• B)Prepare an adjusting entry to debit retained earnings and credit maintenance expense.
• C)Restate their 2016 financial statements.
• D)Ignore it.

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Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Interpreting Sentences

The process of understanding and deriving meaning from spoken or written language constructs.

Unconscious Process

Mental activities beyond conscious awareness, influencing perceptions, thoughts, and behaviors without an individual's voluntary control.

Ongoing Fashion

The current style or trend in clothing, accessories, or overall dress that continues to develop or evolve.