At the End of the Fiscal Year, the Usual Adjusting

question 35

Multiple Choice

At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following statements is true?

• A) Total assets at the end of the year will be understated.
• B) Owner's equity at the end of the year will be understated.
• C) Net income for the year will be overstated.
• D) Insurance expense will be overstated.

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Definitions:

Infection

An infection occurs when harmful microorganisms like bacteria, viruses, fungi, or parasites invade the body, potentially causing illness or disease.

Left Lymphatic Duct

A major lymphatic vessel that drains lymph from the lower body and left side of the upper body into the bloodstream.

Subclavian Vein

A major vein that receives blood from the arm through the axillary vein and runs under the collarbone (clavicle) to return blood to the heart.

Brachiocephalic

Pertaining to the brachiocephalic artery or vein, essential for transporting blood to the arms and head.