At the End of the Fiscal Year, the Usual Adjusting

question 83

Multiple Choice

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements 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 owner's 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.

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Definitions:

Attitude

Evaluation of a stimulus; can range from positive to negative.

Liked

The feeling of being appreciated or preferred by others, often measured by positive reactions in social and digital contexts.

Mere Exposure Effect

The psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Stimulus

Anything that can provoke a response or reaction from a biological organism or a system.