Failure to record depreciation at year end will result in an

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of a long-term asset over its useful life. If depreciation is not recorded at year end, it will result in an overstatement of total assets as the cost of the asset will not be reduced by the amount of depreciation expense incurred during the year. This will lead to an incorrect balance sheet presentation and an incorrect calculation of net income for the year.

Failure to Record Depreciation at Year End Will Result in an