At the End of the Fiscal Year, the Usual Adjusting

question 166

Multiple Choice

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?

• A) Net income will be overstated for the current year.
• B) Total assets will be understated at the end of the current year.
• C) The balance sheet and income statement will be misstated but the Retained Earnings statement will be correct for the current year.
• D) Total expenses will be overstated at the end of the current year.

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Definitions:

Prejudice

Preconceived opinions or judgments about individuals or groups based on stereotypes rather than facts.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often resulting in prejudice and discrimination against other cultures.

Ethnocentrism

The act of evaluating other cultures according to preconceptions originating in the standards and customs of one's own culture.

Screened Out

The process of eliminating candidates or options that do not meet certain criteria or standards.