Social Studies, 23.04.2020 22:53 amy1983
Masterfalls Corporation purchased a one-year insurance policy in January 2010 for $60,000. The insurance policy is in effect from March 2010 through February 2011. If the company neglects to make the proper year-end adjustment for the expired insurance:
a. net income and assets will be understated by $10,000
b. net income and assets will be overstated by $10,000
c. net income and assets will be understated by $50,000
d. net income and assets will be overstated by $50,000
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