Homework SourseWhat will be the result if the adjusting entry to record the
What will be the result if the adjusting entry to record the current period’s depreciation on equipment is not recorded?
| A | The net income for the period will be understated. | |
| B | The net income for the period will be overstated. | |
| C | The net income for the period will not be affected. | |
| D | The assets for the period will be understated. |
Solution
If the adjusting entry to record the current period\'s depreciation on equipment is not recorded it means expense is understated when expense is understated net income is overstated.
So answer is b) The net income for the period will be overstated.
