If the Total Amount for Rent Expense Is Inadvertently Posted

question 36

Multiple Choice

If the total amount for Rent Expense is inadvertently posted to Prepaid Rent at the end of the year, what will be the effect on the year-end financial statements?

• A) Assets will be understated
• B) Revenues will be overstated
• C) Revenues will be understated
• D) Revenues will be correctly stated

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