Multiple Choice
James & Younger Corporation purchased a one-year insurance policy in February 2021 for $42,000.The insurance policy is in effect from March 2021 through February 2022.If the company neglects to make the proper year-end adjustment for the expired insurance:
A) net income and assets will be understated by $35,000.
B) net income and assets will be overstated by $35,000.
C) net income and assets will be understated by $7,000.
D) net income and assets will be overstated by $7,000.
Correct Answer:
Verified
Correct Answer:
Verified
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