The entry to record expired insurance is omitted. This error causes Select one: a. assets to...
The entry to record expired insurance is omitted. This error causes
Select one:
a. assets to be overstated.
b. expenses to be overstated.
c. liabilities to be overstated.
d. liabilities to be understated.
e. an increase in liabilities on the balance sheet.
Homework Answers
When the entry to record expired insurance is omitted, it will lead to the assets to be overstated.
Expired insurance is required to be recorded as expense in the current period. Omission of expired insurance will lead to overstatement of assets.
So correct answer is a) assets to be overstated
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a. $38
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