If the Total Amount for Rent Expense Is Inadvertently Posted

question 65

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) Expenses will be overstated
• B) Assets will be overstated
• C) Revenues will be understated
• D) Owner's equity will be understated

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Definitions:

Nearest Tenth

A mathematical term describing the rounding of numbers to the first decimal place.

Larger

Comparatively greater in size, quantity, or extent.

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Natural plant-based products used to prevent, alleviate, or cure diseases and conditions, often part of traditional or alternative medicine practices.