At the End of the Fiscal Year, the Usual Adjusting

question 84

Multiple Choice

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following is true?

• A) total assets will be understated at the end of the current year
• B) the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year
• C) net income will be overstated for the current year
• D) total liabilities and total assets will be understated