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?
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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?
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.
Your Net Income will be overstated
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