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5. Failure to Record Depreciation

in Chapter 7 (Problem 5 of 5)

Failure to record depreciation expense for the year has what affect on the following:

Assets Liabilities Stockholder’s Equity
1 Overstated No Effect Overstated
2 Understated Understated Understated
3 No Effect No Effect No Effect
4 Understated No Effect Understated
5 Overstated Overstated No Effect
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The Rest Of The Practice Problems

Click Here to View All Chapter 7 Problems at Once View
1 The Effect of Amortization Easy
2 The Effect of Capital vs Revenue Expenditures Easy
3 Calculating Depreciation using DDB Moderate
4 Change in Depreciation Moderate
5 Failure to Record Depreciation
You are here. 		Moderate
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Chapter 7 Videos

1 Acquisition Cost of Assets 13:23
2 Lump Sum Purchases 6:01
3 What is Depreciation? 11:23
4 Straight Line Depreciation 4:33
5 Double Declining Balance 13:58
6 Units of Production 3:43
7 Partial Year Depreciation 5:50
8 Capital vs. Revenue Expenditures 10:42
Chapter 8 →