If the accountant failed to make an adjusting entry at the end of the period to record depreciation for the period, the omission will cause
A) an overstatement of expenses
B) an overstatement of revenues
C) an understatement of assets
D) an overstatement of liabilities
E) an overstatement of assets

Question

Quizplus · Accepted Answer

Failure to record depreciation at the end of the period will result in an overstatement of assets since the assets will be recorded at their original cost without any reduction for depreciation. This will result in a higher net income and higher total assets on the balance sheet.

If the Accountant Failed to Make an Adjusting Entry at the End