If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Name: If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.
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Question

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If depreciation is not recorded, assets will be overstated because the expense that should reduce their value has not been accounted for.

If the Adjustment for Depreciation for the Year Is Inadvertently