Log in

View Full Version : If an accountant failed to make an djusting entry for depreciation expense what error


dormaine27
May 3, 2010, 07:11 PM
If an accountant failed to make an djusting entry for depreciation expense for the year what will be one of the effects of the error?

rehmanvohra
May 3, 2010, 11:25 PM
This would violate the matching principle which requires the revenues earned with the expenses incurred to generate that revenue.

It should be clear to you now about the effect of not recording depreciation on the net income and asset valuation.

pready
May 5, 2010, 02:48 PM
Your Net Income will be overstated