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5 March, 15:53

The omission of the adjusting entry to record depreciation expense will result in an

A. understatement of assets and an understatement of owner's equity.

B. overstatement of assets and an overstatement of owners' equity.

C. overstatement of assets and an overstatement of liabilities.

D. overstatement of liabilities and an understatement of owners' equity.

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Answers (1)
  1. 5 March, 19:09
    0
    B. overstatement of assets and an overstatement of owners' equity.

    Explanation:

    To recognize depreciation expense, the entries required are

    Debit depreciation expense

    Credit Accumulated depreciation

    The accumulated depreciation is a credit balance in the fixed asset account. Depreciation is also an expense that reduces net income and thus reduces the owners equity.

    Hence an mission of the adjusting entry to record depreciation expense will result in an overstatement of assets and an overstatement of owners' equity.
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Home » Business » The omission of the adjusting entry to record depreciation expense will result in an A. understatement of assets and an understatement of owner's equity. B. overstatement of assets and an overstatement of owners' equity. C.
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