Asked by vitor zucco on Jul 16, 2024
Verified
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.
Depreciation
The systematic allocation of the depreciable amount of an asset over its useful life.
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.
- Comprehend the principles of book value, depreciation, and the accounting adjustments for depreciation.
Verified Answer
KM
Kendra MotonJul 21, 2024
Final Answer :
False
Explanation :
If depreciation is not recorded, assets will be overstated because the expense that should reduce their value has not been accounted for.
Learning Objectives
- Comprehend the principles of book value, depreciation, and the accounting adjustments for depreciation.