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On December 31,2012,the Adjusting Entry for Depreciation Was Made Incorrectly

question 74

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On December 31,2012,the adjusting entry for depreciation was made incorrectly.The following is the entry which was made erroneously:  Depreciation expense 1,500 Accumulated depreciation 1,500\begin{array} { | l | r | r | } \hline \text { Depreciation expense } & 1,500 & \\\hline \text { Accumulated depreciation } & & 1,500 \\\hline\end{array} The correct amount of depreciation should have been $5,100.Consider the effects of this error on the balance sheet,and identify which of the following statements is TRUE.


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External Users

Individuals or entities outside of an organization who have an interest in the organization's financial information, such as investors and creditors.

Investment Decisions

Choices made by individuals or enterprises regarding where, when, and how much to invest in order to achieve financial goals or maximize returns.

Financial Information

Data related to the financial status of an entity, including balance sheets, income statements, and cash flow reports, used by stakeholders to make informed decisions.

Accounting Records

Documents and books that systematically record financial transactions and positions of a business.

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