The Accountant for Main Street Jewelry Repair Services Company Forgot

question 181

Multiple Choice

The accountant for Main Street Jewelry Repair Services Company forgot to make an adjusting entry for Depreciation Expense for the current year.Which of the following is an effect of this error?

• A) Total assets are understated.
• B) Revenues are overstated.
• C) Total assets are overstated.
• D) Net income is understated.

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Definitions:

Registrars

Entities responsible for maintaining records of shareholders and bondholders for corporations and ensuring compliance with regulatory requirements.

Transfer Agents

Entities responsible for maintaining records of a company's securities owners, handling transfers of stock or bonds, and managing lost, destroyed, or stolen certificates.

Preferred Stockholders

Investors who own shares that give them priority for dividend payments and assets in the event of a company's liquidation.

Current-Year Dividends

Dividends that are declared and paid to shareholders from the profits made by the company within the current fiscal year.