At Year-End,it Was Forgotten to Adjust the Asset Prepaid Rent

question 16

Multiple Choice

At year-end,it was forgotten to adjust the asset prepaid rent for the $5,000 rent expense used-up during the year.This will result in an:

• A) understatement of assets and an overstatement of profit and equity.
• B) overstatement of assets, profit, and equity.
• C) overstatement of liabilities and an understatement of profit and equity.
• D) understatement of assets, profit, and equity.