The omission of the adjusting entry to record depreciation expense will result in an:

a. overstatement of assets and an overstatement of owners' equity.
b. understatement of assets and an understatement of owner's equity.
c. overstatement of assets and an overstatement of liabilities.
d. overstatement of liabilities and an understatement of owners' equity.

Ans: a. overstatement of assets and an overstatement of owners' equity.

Business

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The transfer of a negotiable instrument by a person other than the issuer to a person who thereby becomes a holder is referred to as a(n) ________

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