Not recognizing depreciation expense in a given month will
A)understate total assets.
B)understate total revenues.
C)overstate total liabilities.
D)overstate net income.
E)have no effect since this is a temporary error.

Question

Quizplus · Accepted Answer

Not recognizing depreciation expense in a given month will overstate net income. Depreciation expense is a non-cash expense that reduces net income. If it is not recognized, the company's net income will be higher than it should be.

Not Recognizing Depreciation Expense in a Given Month Will