If the Adjusting Entry for Depreciation Is Not Made

question 105

Multiple Choice

If the adjusting entry for depreciation is not made

• A) assets will be understated.
• B) owner's equity will be understated.
• C) net income will be understated.
• D) expenses will be understated.

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Definitions:

Production

The process of creating goods and services, involving tasks such as assembly, fabrication, and conversion of materials and resources.

Cost of Goods Manufactured

The total cost of producing goods during a specific accounting period, including labor, material, and overhead costs.

Job-Order Costing

An accounting method used to track costs and evaluate the profitability of individual jobs or batches, particularly useful in custom or unique production environments.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services.