Failure to record depreciation expense for the period results in which of the following?

Question

Quizplus · Accepted Answer

Failure to record depreciation expense for the period will result in net income being overstated, as the assets are not being properly adjusted for their decrease in value over time. This will also result in stockholders' equity being overstated, as net income is a component of stockholders' equity. Additionally, since depreciation expense is a non-cash item, it does not affect total assets, so choice B is incorrect.

Failure to Record Depreciation Expense for the Period Results in Which