True/False
Indicate whether the sentence or statement is true
or false.
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1.
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If
the adjustment for accrued salaries at the end of the period is inadvertently omitted, both
liabilities and owner's equity will be overstated for the period.
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2.
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If
the adjustment to recognize expired insurance at the end of the period is inadvertently omitted, the
assets at the end of the period will be understated.
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3.
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If
the adjustment of the Unearned Rent account at the end of the period to recognize the amount of rent
earned is inadvertently omitted, the net income for the period will be overstated.
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4.
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If
the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance
sheet at the end of the period will be understated.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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5.
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At
the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired
insurance was omitted. Which of the following statements is true? a. | total assets at
the end of the year will be understated. | b. | stockholders' equity at the end of the year will be
understated. | c. | net income for the year will be
overstated. | d. | insurance Expense will be overstated. | | |
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