In Preparing Its 2011 Adjusting Entries,the Philippoussis Company Neglected to Adjust

question 2

Multiple Choice

In preparing its 2011 adjusting entries,the Philippoussis Company neglected to adjust the Office Supplies asset) account for the amount of supplies used up during the year.As a result of this error:

• A)2011 profit is understated,the balance of equity is understated,and assets are understated
• B)2011 profit is overstated,the balance of equity is overstated,and assets are correctly stated
• C)2011 profit is overstated,the balance of equity is overstated,and assets are overstated
• D)Liabilities are understated

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High-Maintenance

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