If the Prepaid Rent Account Is Not Adjusted at the End

question 47

Multiple Choice

If the Prepaid Rent account is not adjusted at the end of the period,what effect will this have on the financial statements?

• A)Liabilities will be overstated and net income will be understated.
• B)Assets will be understated and net income will be understated.
• C)Assets will be overstated and net income will be overstated.
• D)Cash will be overstated and net income will be overstated.

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American Psychological Association

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