James Corporation purchased a one-year insurance policy in January 2013 for € 36,000. The insurance policy is in effect from May 2013 through April 2014. If the company neglects to make the proper year-end adjustment for the expired insurance
A) Net income and assets will be understated by € 24,000.
B) Net income and assets will be overstated by € 24,000.
C) Net income and assets will be understated by € 12,000.
D) Net income and assets will be overstated by € 12,000.
Correct Answer:
Verified
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