Magic Corp A) $\text { Understated } \quad \text { Overstated} \quad \text { Understated }$

question 99

Multiple Choice

Magic Corp.purchased new equipment during the year but neglected to record depreciation.What is the effect of this omission on each of the named accounts?
$\begin{array}{ccc}\text { Accumulated } & \text { Retained } & \text { Depreciation } \\\text { Depreciation } & \text { Earnings } & \text { Expense }\end{array}$

• A)\(\text { Understated } \quad \text { Overstated} \quad \text { Understated }\)
• B)\(\text { Understated } \quad \text { No effect } \quad \text { Overstated }\)
• C)\(\text { Overstated} \quad \text { Understated } \quad \text {Understated }\)
• D)\(\text { Overstated } \quad \text { No effect } \quad \text { Overstated }\)
• E)\(\text { Overstated } \quad \text { Understated } \quad \text { Overstated }\)

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Definitions:

Diploid

Refers to cells that contain two complete sets of chromosomes, one from each parent, typical for somatic cells in sexually reproducing organisms.

Allele Frequency

The proportion of a particular allele (variant of a gene) among all allele copies in a population.

Population Size

The total number of individuals within a species or specific group living in a designated geographical area.