Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   If an accountant failed to make an djusting entry for depreciation expense what error (https://www.askmehelpdesk.com/showthread.php?t=468720)

  • May 3, 2010, 07:11 PM
    dormaine27
    If an accountant failed to make an djusting entry for depreciation expense what error
    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?
  • May 3, 2010, 11:25 PM
    rehmanvohra

    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.
  • May 5, 2010, 02:48 PM
    pready

    Your Net Income will be overstated

  • All times are GMT -7. The time now is 03:53 AM.