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If the Total Amount for Insurance Expense Is Inadvertently Posted

Question 79

Multiple Choice

If the total amount for Insurance Expense is inadvertently posted to Prepaid Insurance at the end of the year, what will be the effect on the year-end financial statements?


A) Expenses will be understated
B) Owner's equity will be overstated
C) Net income will be overstated
D) All of these are true

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