If a Company Mistakenly Forgot to Record Depreciation on Office

question 64

Multiple Choice

If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:

• A) Assets overstated and equity understated.
• B) Assets and equity both understated.
• C) Assets overstated, net income understated, and equity overstated.
• D) Assets, net income, and equity understated.
• E) Assets, net income, and equity overstated.

---

Definitions:

Cheat

To act dishonestly or unfairly in order to gain an advantage, especially in a school, sports, or relationship context.

Academic Institutions

Organizations dedicated to education and research, typically involving schools, colleges, universities, and research institutes.

Active Reading

A reading strategy that involves engagement and interaction with the text to enhance comprehension and retention.

Previewing

The act of examining or reviewing something before seeing or viewing it in its entirety to get a general idea of its content.