Identify the Effect (A Through H) That Omitting Each of the Following

question 159

Multiple Choice

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet.
-Property taxes are paid annually. The estimated monthly amount for the taxes was not recorded.

• A)Assets and owner's equity overstated
• B)Assets and owner's equity understated
• C)Assets overstated and owner's equity understated
• D)Assets understated and owner's equity overstated
• E)Liabilities and owner's equity overstated
• F)Liabilities and owner's equity understated
• G)Liabilities overstated and owner's equity understated
• H)Liabilities understated and owner's equity overstated

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Definitions:

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Court Opinion

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Dicta

Comments made by a judge in a court opinion that are not essential to the decision and therefore not legally binding as precedent.

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Official pronouncements or declarations made by a judge or court of law regarding a legal matter or case.