Which of the following would understate net income?
A)Failing to post an adjusting entry to accrue revenue.
B)Understating the amount of Depreciation Expense recorded.
C)Failing to prepare an adjusting entry to recognize the portion of prepaid rent that has expired.
D)Overstating the year-end balance of the Supplies account.

Question

Quizplus · Accepted Answer

Omitting an adjusting entry to accrue revenue will understate revenue and net income.Understating Depreciation Expense will understate expenses and overstate net income.Failure to record the portion of prepaid rent that has expired will understate expenses and overstate net income.Overstating the year-end balance of the Supplies account will understate supplies expense and overstate net income.

Which of the Following Would Understate Net Income