Answered: The omission of an adjusting entry for…

Business

Accounting

The omission of an adjusting entry for the depreciation of equipment will have what effect on the financial statements?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter4: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 7QY: Accumulated Depreciation, Equipment is reported a. on the income statement as an expense. b. on the...

See similar textbooks

Related questions

Q: An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held…

A: If the noncurrent asset is classified as held for sale, it would be recorded in the income from…

Q: The following statements relate to the depreciation of property, plant and equipment. Which…

A: Lets start with basic understanding. Depreciation is a reduction in value of asset due to wear and…

Q: Which of the following is not a counterbalancing error? Non-recognition of the unused portion of…

A: Counterbalancing errors are those errors which will counter balance automatically in the next year.…

Q: Explain whether an error has occurred if a post-closing trial balance includes a Depreciation…

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

Q: The qualification of an asset to be classified as held for sale after reporting period but before…

A: Solution: The qualification of an asset to be classified as held for sale after reporting period but…

Q: different depreciation methods are used in different financial year

A: According to the concept of consistency in Accounting, accounting method used in one financial year…

Q: Explain is a change in depreciation method a change in accounting principle, or is it a change in…

A: According to the Accounting Standard 1- the change in the method of depreciation is a change in the…

Q: Explain the conditions under which assets and liabilities are derecognized

A: The answer for the theory question on the conditions under which assets and liabilities are…

Q: There are various types of accounting changes, each of which is required to be reported…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: What is the effect of omission of accrued income in assets at the end of the year of error? a.…

A: Accrued income: Increases assets Increases Owners' equity

Q: There are various types of accounting changes, each of which is required to be reported differently.…

A: 1.A change from the sum-of-the-years’-digit method of depreciation to straight line method, creates…

Q: The accounting treatment of depreciation is not recorded in.. Receipt-Payment A/C All of the above…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Explain the accounting treatment and disclosures required when a change is made in depreciation…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed…

Q: When the estimate of an asset's useful life is changed, select the false statement a. depreciation…

A: Depreciation refer to fall in the value of asset every year. It is an accounting word that refers to…

Q: As prepaid assets are used to generate revenue, an adjustment is necessary to reduce the previously…

A: Prepaid assets are those assets which consists of advance payments for goods and services that are…

Q: Failure to prepare an adjusting entry at the end of the period to record an accrued expense woul O…

A: Adjustment entry of accrued expenses is passed at the end of accounting period to recognise expense…

Q: If depreciation expense is not recorded how would that affect financial statements and…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: When a company changes from the straight-line method of depreciation for previously recorded assets…

A: A change in depreciation method is indistinguishable from a change in estimate and is treated as…

Q: Which of the following is not a type of adjusting entry? a. Depreciation of long-term physical…

A: In accounting, adjusting entries are journal entries usually made at the end of an accounting period…

Q: Why depreciation on fixed assets is not recorded in receipts and Payment Account?

Q: When do we apply depletion in accounting? Discuss its use. What is the difference between…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is not a counterbalancing error? O Omission of accrued interest expense at…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is not accomplished by an adjusting entry? A. Updating liability and asset…

A: Adjusting entries are prepared to ensure the financial statement is following the accrual base…

Q: For each of the following situations, indicate whether itrepresents an accounting error and explain…

A: Answer: Accounting error.

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? Group…

A: The correct option with proper explanation are as follows

Q: A company has decided to change its depreciation method to better reflect the pattern of use of its…

A: As per Generally accepted accounting principles, using an appropriate method for applying…

Q: If a P2,500 adjustment for depreciation is omitted, which of the following financial statement…

Q: Which of the following is most likely not considered an adjusting entry? a. The accrual of an…

A: Solution: "The entry to record the collection of interest receivable" is most likely not considered…

Q: Would a change from straight line depreciation to double declining balance be a change in accounting…

A: Accounting changes: When a company requires to sacrifice the consistent accounting methods and…

Q: Depreciation expense is:

A: Answer

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? O No…

A: Accrued expenses are expenses that are recognised in the books of accounts before they have been…

Q: Kline Company failed to record depreciation of equipment. How does this omissionaffect Kline’s…

A: Answer: d. Net income is understated and assets are understated.

Q: What is the effect of omission of accrued income in assets at the end of the year of error? O NO…

A: A basic Accounting equation is given as under; Assets = Equity + Liabilities Meaning, Total…

Q: What type of assets requires adjusting entries to record depreciation?

A: The assets that require adjusting entries to record depreciation is long-term tangible assets. The…

Q: Which of the following adjusting entries would most likely be reversed? Depreciation Unpaid Salaries…

A: Adjusting entries are made at the end of the period to adjust for the balances and transactions…

Q: under the expense method what is the purpose of adjusting entries A. To record unused portuon of…

A: Adjusting entries are those entries which are passed at the end of the period in order to accurately…

Q: of omission of accrued expenses in assets at the end of t

A: Accrued expenses are expenses which have been incurred but remain unpaid at the end of the year.…

Q: The amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b.…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: Standby equipment held for use in the event of a breakdown of regular equipment is reported as…

A: Introduction:- Fixed Asset are tangible nature, which are used in company for daily operation. Plant…

Q: Which of the following is most likely not considered an adjusting entry? The accrual of an…

A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current…

Q: Accounting is not as precise and objective as it is sometimes portrayed as being. There are areas…

A: Depreciation Expense is nothing but an apportionment of cost of fixed assets that are appropriate to…

Question

The omission of an adjusting entry for the depreciation of equipment will have what effect on the financial statements?

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is the adjusting entry for depreciation on Equipment? Debit Depreciation Expense, Equipment and credit Equipment Debit Equipment and credit Depreciation Expense, Equipment Debit Depreciation Expense, Equipment and credit Accumulated Depreciation, Equipment Debit Accumulated Depreciation, Equipment and credit Depreciation Expense, Equipment None of the above
Accumulated Depreciation, Equipment is reported a. on the income statement as an expense. b. on the balance sheet as an addition to total assets. c. on the income statement as a revenue. d. on the balance sheet as a subtraction from the related asset account.
Which of the following is not a type of adjusting entry? a. Depreciation of long-term physical assets b. Allocation of unearned revenue c. Correction of an error in the general journal d. Recording of accrued revenue
Explain is a change in depreciation method a change in accounting principle, or is it a change in estimate?
Which of the following would NOT be reflected in the income statement? Group of answer choices A.Correction of an error in previously issued financial statements B.Loss on disposal of a segment of a business C.Cumulative effect of a change in depreciation methods D.An extraordinary item
The entry to record depreciation is an example of an adjusting entry: a. to apportion a recorded cost C. To record unrecorded expense b. to apportion unearned revenue D. To record unrecorded revenue
The Accountant for the a Company forgot to make an adjusting entry to record depreciation for the current year. The effect of this error would be: a An overstatement of net income and an understatement of assets. b An overstatement of assets offset by an understatement of owners' equity. c An overstatement of assets, net income, and owners' equity. d An overstatement of assets and of net income and an understatement of owners' equity.
Which of the following should be reported as a prior period adjustment? Change in Estimated Lives of Depreciable Assets Change from Unaccepted Principle to Accepted Principle
If depreciation expense is not recorded how would that affect financial statements and decision-makers?
True or false The change in depreciation method is a change in accounting policy.
The qualification of an asset to be classified as held for sale after reporting period but before the financial statements are authorized for issue a. is a non adjusting event after reporting period b. is an adjusting event after reporting period c. is an extraordinary item d. a or b
If you fail to journalize and post the adjusting journal entry to depreciate equipment, what is the impact on the financial statements of the company? There is no impact on either the income statement or the balance sheet. Net income is understated, Assets are Understated, and Retained Earnings are understated Expenses are understated, Assets are overstated, and Retained Earnings are overstated Revenue is understated, Liabilities are understated, and Retained Earnings are understated Expenses are understated, Assets are Understated, and Retained Earnings are understated