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.

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Definitions:

Coracobrachialis

A muscle in the shoulder that helps in flexing and adducting the arm at the shoulder joint.

Pectoralis Major

A large muscle in the upper chest that contributes to arm movements such as flexion, adduction, and internal rotation, playing a key role in the shoulder's strength and stability.

Deltoid

A big, triangular-shaped muscle that wraps around the shoulder joint, crucial for elevating the arm and enabling the shoulder's movement range.

Biceps Brachii

A muscle located in the upper arm that functions in flexing the elbow and supinating the forearm.