Failure to Record Depreciation at Year End Will Result in All

question 146

Multiple Choice

Failure to record depreciation at year end will result in all of the following except

• A)understatement of total liabilities.
• B)overstatement of total assets.
• C)overstatement of net income.
• D)overstatement of stockholders' equity.

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Definitions:

Bailor

An individual who temporarily entrusts possession of personal property to another, known as the bailee, under a bailment agreement.

Transfers Possession

The act of passing the physical control or ownership of an item, property, or asset from one party to another.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and psychological identity.

Gratuitous Bailment

A bailment where the bailor lends an item to the bailee without expecting payment, the bailee is thus under a duty to return the item.