ANSWER : C ) Net income for the period will be overstated.
Journal entry for recording depreciation
Depreciation a/c ........ Dr. xxxx
To Accumulated depreciation a/c. xxxx
Income statement ......Dr. xxxx
To Depreciation a/c. xxxx
If depreciation of an asset is not recorded, then the income statement will be overstated by the amount of depreciation to be charged. And at the same time accumulated depreciation would be understated.
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What will be the result if the adjusting entry to record the current period's depreciation on...
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