Question

The credit portion of the adjustment for the depletion ofof a a coal mine was credited to the coal mine account. This error would cause
A. The periods net income to the overstated.
B. The periods net income to be understated
C. The period end assets to be overstated
D. None of the above

Answer 1

please close this and put it in a different subject.

Answer 2

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I think Deadpool is right. You should post this in a different question however, I'm not sure which is the right section. I think this would fall under the Finance section of the site, but it's a dead section so I'll try help you here. Just give me a sec.

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Answer 3

**different section not question

Answer 4

Let's see , overstated means "the reported amount is more than the true or correct amount" while understated means "the amount is less than the true amount". Since the question says that "credit portion of the adjustment for the depletion of a coal mine was credited to the coal mine account", it means that that the amount that will be reported (cost spent for the adjustments) will increase which will affect the net income. The net income of the company will be less than the usual amount, so I think it will be understated. This is just my analysis, so I'm not 100% sure if I'm right.

Reference: Accounting Coach.com