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At march 31 the end of the first month of operations the

At March 31, the end of the first month of operations, the usual adjusting entry transferring prepaid insurance expired to an expense account is omitted. Which items will be incorrectly stated, because of the error, on?

(a) The income statement for March and

(b) The balance sheet as of March 31? Also indicate whether the items in error will be overstated or understated.

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Accounting Basics: At march 31 the end of the first month of operations the

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