Adjusting entry to prepaid insurance


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. Owner's equity at the end of the year will be understated.

c. Insurance Expense will be overstated.

d. Net income for the year will be overstated

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Accounting Basics: Adjusting entry to prepaid insurance
Reference No:- TGS091389

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