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.

---

Definitions:

Progressive Reforms

Initiatives and policies aimed at addressing social injustice, corruption, and economic inequality in the early 20th century United States.

Economic Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Civil Rights

The rights of citizens to political and social freedom and equality, often associated with movements to end discrimination and promote equal protection under the laws.