OnaRoll,Inc.amortizes its copyright of $20,000 over 40 years.Miss Hap,the bookkeeper,forgot to record the amortization in the current year.The effect of this mistake causes:
A) assets to be overstated.
B) cash to be overstated.
C) retained earnings to be understated.
D) liabilities to be understated.

Question

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The Answer of OnaRoll,Inc.amortizes its copyright of $20,000 over 40 years.Miss Hap,the bookkeeper,forgot to record the amortization in the current year.The effect of this mistake causes:
A) assets to be overstated.
B) cash to be overstated.
C) retained earnings to be understated.
D) liabilities to be understated.