In Preparing Its 2011 Adjusting Entries,the Philippoussis Company Neglected to Adjust

Multiple Choice

In preparing its 2011 adjusting entries,the Philippoussis Company neglected to adjust the Office Supplies asset) account for the amount of supplies used up during the year.As a result of this error:

A) 2011 profit is understated,the balance of equity is understated,and assets are understated
B) 2011 profit is overstated,the balance of equity is overstated,and assets are correctly stated
C) 2011 profit is overstated,the balance of equity is overstated,and assets are overstated
D) Liabilities are understated