Asked by
Nicole El Haber
on Nov 15, 2024Verified
The adjustment for depreciation expense was omitted; this would:
A) overstate the period's expenses and overstate the period end liabilities.
B) overstate the period's expenses and understate the period end liabilities.
C) understate the period's expenses and overstate the period's assets.
D) understate the period's expenses and understate the period's assets.
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
Period's Expenses
Costs incurred by a business during a specific period of time, such as a month or year, in the course of its operations.
Period End Liabilities
Period end liabilities are the obligations a company must pay at the end of an accounting period.
- Comprehend how modifications affect financial reports.
- Recognize the impact of errors in the recording of depreciation on financial statements.
Verified Answer
JV
Learning Objectives
- Comprehend how modifications affect financial reports.
- Recognize the impact of errors in the recording of depreciation on financial statements.