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

---

Definitions:

Cognitive

Relating to intellectual activity such as thinking, reasoning, or remembering.

Preoperative Education

Informative sessions aimed at preparing patients for the surgical process, potential risks, and post-surgery care.

Learning Process

The cognitive, emotional, and environmental influences and experiences by which individuals acquire new knowledge or skills.

Economic Status

A measure of a person or group’s financial and social position in relation to others, based on income, wealth, and occupation.