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Question 1) At December 31 , 2015 , before any year end adjustments , Harvest Inc.'s Prepaid Insurance account had a balance of $2,000 It was determined that $ 800 of the Prepaid Insurance had expired The adjusted balance for Prepaid Insurance at year end would be
Option 1: $2,800
Option 2: $ 800.
Option 3: $1,200
Option 4: $2.000
Question 2) At the end of the current year, the required adjusting entry for depreciation on equipment was omitted. Which of the following statements is true regarding the current year's financial statements?
Option 1: Total assets will be understated
Option 2: the statement of financial position and income stamen will be misstated but the statement of changes to equity will be correct
Option 3: profit will be overstated
Option 4: retained earning will be understated
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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