If an Accountant Forgot to Record Depreciation on Office Equipment

question 167

Multiple Choice

If an accountant forgot to record depreciation on office equipment at the end of an accounting period, what is the effect on the statements prepared at that time?

• A)Assets are overstated and equity is understated.
• B)Assets are overstated, profit is understated, and equity is overstated.
• C)Assets, profit, and equity are overstated.
• D)Assets, profit, and equity are understated.
• E)Assets and equity are both understated.

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Definitions:

Emotionally Charged

Something that is emotionally charged carries a strong emotional significance or elicits a strong emotional response.

Cross-race Identifications

The phenomenon where individuals are less accurate in recognizing faces of people from races other than their own.

Misidentifications

Misidentifications involve the incorrect recognition or identification of people, objects, or events, often occurring in psychological disorders.

Same-race Identifications

The phenomenon where individuals are more accurate in recognizing and distinguishing faces of their own racial or ethnic group than those of other groups.