The accountant for Barnes Architectural Services failed to make an adjusting entry to record $7 000 of depreciation expense. Which of the following is TRUE?
A)Total expenses are understated.
B)Total expenses are overstated.
C)Total revenue is overstated.
D)Total revenue is understated.

Question

Quizplus · Accepted Answer

Depreciation expense is a cost that should be recorded to reflect the usage of assets over time. Failing to record it means that total expenses are understated.

The Accountant for Barnes Architectural Services Failed to Make an Adjusting