At the End of the Fiscal Year the Usual Adjustment

question 32

Multiple Choice

At the end of the fiscal year the usual adjustment 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:

Creativity

The ability to produce original and valuable ideas or objects.

Creativity

Creativity involves the ability to produce original and valuable ideas or solutions through imagination and innovation.

Environments

The surroundings or conditions in which a person, plant, or animal lives or operates, including both natural and man-made contexts.

Divergent Thinking

An aspect of creativity that involves thinking in varied and unique directions in order to generate multiple solutions for a given problem.