If Depreciation for the Current Period Is Not Recorded, Net

question 37

True/False

If depreciation for the current period is not recorded, net income for the current period will be understated.

---

Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to raise funds and manage the national debt.

Corporate Stock

Share in a corporation. The stockholders own the corporation.

Depository Institutions

Financial institutions that accept deposits from the public, including banks, savings and loan associations, and credit unions, providing various banking and lending services.

Deposits

Funds placed into banking institutions for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.