If the Accountant Failed to Make an Adjusting Entry at the End

question 94

Multiple Choice

If the accountant failed to make an adjusting entry at the end of the period to record depreciation for the period, the omission will cause:

• A)An overstatement of assets.
• B)An overstatement of expenses.
• C)An understatement of assets.
• D)An overstatement of liabilities.
• E)An overstatement of revenues.

---

Definitions:

Expected Return

The potential return on an investment, taking into account both the probability of gains and the risk of loss.

Portfolio

A diversified collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.

Cyclical Stock

A stock that's price is affected by macroeconomic or systematic changes in the overall economy, typically performing well during economic expansions and poorly during contractions.

Boom Economy

A period characterized by rapid economic growth, significant increases in jobs, and elevated consumer spending.