Beesechurger22id
Answered

At the end of the fiscal period, Burton Company omitted the adjusting entry for depreciation
on equipment. The effect of this error on the financial statements is to

a. understate liabilities.
b. understate owner's equity.
c. overstate expenses.
d. overstate assets

Sagot :

The impact of the given error on the financial statement should be an overstatement of the assets.

  • Since the adjusting entry for depreciation is omitted i.e.

Depreciation expense Dr XXXXX

    To accumulate depreciation  XXXXXX

(being depreciation expense is recorded)

Here depreciation expense is debited as it increased the assets and credited the accumulated depreciation as it decreased the assets.

So if the above journal entry is omitted so it means the assets should be overstated.

Learn more about the depreciation here: brainly.com/question/15085226

ID Other Questions