If a company forgot to record depreciation on equipment for a period,Total Assets would be overstated and Total Stockholders' Equity would be understated on the balance sheet.

Question

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If depreciation is not recorded, Total Assets would be overstated, but Total Stockholders' Equity would also be overstated, not understated, because expenses (which reduce equity) are understated.

If a Company Forgot to Record Depreciation on Equipment for a Period,Total