If the Total Amount That Should Have Been Debited to Rent

question 73

Multiple Choice

If the total amount that should have been debited to Rent Expense is mistakenly debited instead to Prepaid Rent,what will be the effect on the financial statements for the year?

• A)Revenues will be overstated.
• B)Assets will be overstated.
• C)Stockholders' equity will be understated.
• D)Expenses will be overstated.

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