The Accountant of Peyton Financial Services Failed to Make an Adjusting

question 123

Multiple Choice

The accountant of Peyton Financial Services failed to make an adjusting entry to record $7,000 of depreciation expense. Which of the following statements is true?

• A) The total revenue will be overstated.
• B) The total revenue will be understated.
• C) The total expenses will be overstated.
• D) The total expenses will be understated.

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