The Accountant for Barnes Architectural Services Failed to Make an Adjusting

question 89

Multiple Choice

The accountant for Barnes Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following is TRUE?

• A) Total liabilities are overstated.
• B) Total liabilities are understated.
• C) Total assets are overstated.
• D) Total assets are understated.

---

Definitions:

Physical Environment

The physical surroundings in which an organism lives, including both natural and built environments.

Grounded in Rules

Based on or derived from a set of explicit or understood regulations or principles.

Competitive

Describes a nature or condition where individuals or groups strive against others to achieve a goal or superior status.

Pleasurable

Describes experiences or sensations that are enjoyable or satisfying to an individual.