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:

Butanoyl Chloride

A four-carbon chain acyl chloride also known as butyryl chloride, used as an intermediate in chemical synthesis.

Reaction Reagents

Substances or compounds added to a system to cause a chemical reaction or are consumed in the reaction.

Nucleophilic Aromatic Substitution

A reaction where an electron-rich nucleophile displaces a leaving group in an aromatic ring, typically under conditions where the aromatic ring is activated towards nucleophilic attack.

2,4-Dinitrochlorobenzene

A chemical compound characterized by a benzene ring with two nitro groups (NO2) and one chlorine atom attached to it at the 2, 4, and 6 positions, respectively.