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:

Alternative Firms

Companies that offer non-traditional or unconventional products, services, or methodologies as compared to mainstream options.

Riparian Owner

An individual or entity that owns land adjoining a river or stream, with certain rights and responsibilities regarding water usage and protection.

Natural Stream

A watercourse that flows naturally without human intervention, which can include rivers, brooks, creeks, and rills.

Reversion Interest

An interest in an asset or property that reverts back to the original owner, or their heirs, after the conclusion of certain conditions or time periods.