If a Company Fails to Make an Adjusting Entry to Record

question 36

Multiple Choice

If a company fails to make an adjusting entry to record the expiration of prepaid insurance, then

• A) owner's equity will be understated.
• B) expense will be understated.
• C) assets will be understated.
• D) net income will be understated.

---

Definitions:

Construct An Argument

The process of logically assembling reasons, evidence, and facts to support a statement, proposition, or conclusion.

Opposing Argument

A statement or viewpoint that conflicts with or counters another argument or proposition.

Alternative Response

A different or non-traditional reaction or solution to a given situation or problem.

Minds

The elements of a person that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought.