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

question 49

Multiple Choice

At year-end, it was forgotten to adjust the asset prepaid rent for the $7,000 rent expense used-up during the year. This will result in an:

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

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Definitions:

On-time Rates

A measure used to evaluate the punctuality or timeliness of services, such as transportations or deliveries.

Scheduled Deliveries

A logistics or supply chain management term referring to the planned timing and routing of deliveries to optimize efficiency and meet customer expectations.

Organic Products

Chemical compounds consisting mainly of carbon and hydrogen, which are produced as a result of organic reactions.

Reaction

The process in which substances (reactants) undergo chemical transformation to form new substances (products) as a result of breaking and forming chemical bonds.