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The Accountant for Noble Jewelry Repair Company Failed to Make

Question 39

Multiple Choice

The accountant for Noble Jewelry Repair Company failed to make an adjusting entry for depreciation expense for the current year. What is the effect of this error on total liabilities?


A) Total liabilities are understated.
B) Total liabilities are not affected.
C) Total liabilities are overstated.
D) There is not enough information presented to determine the effect on total liabilities.

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