The answer is b. Net Income is overstated
The depreciation adjustment reduces net income as well as value of assets.
Hence, when it is not recorded, assets and net income is overstated
There is no effect on revenues.
Hence, the answer is b.
If the adjustment for depreciation is not recorded a. assets are understated. O b. net income...
If the adjustment for prepaid expenses is not recorded a. assets will be understated. ob. expenses will be overstated. c. net income will be correctly stated. od. net income will be overstated.
Question 10 0.5 pts A corporation's depreciation in the current year is $800. The company's accountant recorded the year-end adjusting entry for depreciation as a debit to depreciation expense for $800 and a credit to cash for $800. The company's net income and total assets will be correctly stated. O net income and total assets will be overstated by $800. net income will be correctly stated but total assets will be overstated by $800. net income and total assets will...
If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity overstated, and revenues understated. b. assets will be understated, equity understated and revenue understated. c. assets will be overstated, equity overstated, and revenues understated. d. liabilities will be overstated, equity understated and revenues understated.
If an adjustment for depreciation is omitted from the financial reports the effect is: Select one: O a. Assets are understated; profit is understated O b. Assets are overstated; profit is understated O c. Assets are understated; profit is overstated O d. Assets are overstated; profit is overstated
If an adjustment for accrued income is omitted from the financial reports the effect is: Select one: O a. assets are overstated; profit is understated. O b. assets are understated; profit is overstated. O c. assets are overstated; profit is overstated. O d. assets are understated profit is understated
A company recorded the $36,000 adjusting entry for the earning of rent received in advance by debiting expenses and crediting assets $36,000. Net income is $72,000 understated B. $36,000 understated C. $36,000 overstated $72,000 overstated correctly stated
A bookkeeper erroneously recorded the accrual of revenue using this journa Sales Discount Depreciation Expense The effect of this error on Total Expenses and Total Assets (respectively Select one: a. No Error, Understated Ob. Overstated, Understated c. No Error, No Error Od. Understated, No Error e. Understated, Understated The Vlasik Company declared an $8 cash dividend and recorded this journal entry (assume the amount is accurate, but not necessarily the accounts): Unearned Revenue Prepaid Insurance 58 Indicate the effect of...
If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.
If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.
19. A company recorded the $14,000 adjusting entry for the expiration of prepaid rent by debiting revenues and crediting liabilities for $14,000. Total assets are $14,000 understated $14,000 overstated $28,000 overstated $28,000 understated correctly stated