Failure to Record Depreciation at Year End Will Result in an

question 129

Multiple Choice

Failure to record depreciation at year end will result in an

• A) understatement of total assets.
• B) overstatement of total assets.
• C) overstatement of expenses.
• D) overstatement of total liabilities.

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Definitions:

Comparative Advantage

The ability of a country, individual, or firm to produce a particular good or service at a lower opportunity cost than others.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Opportunities Forgone

The benefits, profit, or value of something that must be given up to acquire or achieve something else.

Opportunity Cost

The outcome of forgoing possible advantages from other alternatives by choosing one option.