If an Accountant Forgot to Record Depreciation on Office Equipment

question 16

Multiple Choice

If an accountant forgot to record depreciation on office equipment at the end of an accounting period,what is the effect on the statements prepared at that time?

• A) Assets are overstated and equity is understated.
• B) Assets and equity are both understated.
• C) Assets are overstated,net income is understated,and equity is overstated.
• D) Assets,net income,and equity are understated.
• E) Assets,net income,and equity are overstated.

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Definitions:

Data

Information processed or stored by a computer.

Input Device

A piece of hardware equipment used to provide data and control signals to an information processing system, such as a computer or mobile device.

Peripheral Device

External devices connected to a computer, used to input or output data, such as keyboards or printers.

Output Device

A device that sends processed data and information out of a computer in the form of text, pictures (graphics), sounds (audio), or video.