When making the adjustment for prepaid insurance, instead of writing off only the time that has passed the entire policy was written off. This would:

a. overstate the assets

b. overstate the liabilities

c. understate net income

d. None of the above.

Question

Brycen Pruitt

8 October, 01:55

+4

Answers (1)

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Violet Palmer · Answer 1

I think it's C understate net income

When making the adjustment for prepaid insurance, instead of writing off only the time that has passed the entire policy was written off. This would:a. overstate the assetsb. overstate the liabilitiesc. understate net incomed. None of the above.