How would the financial position as of december

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Question 1: On March 1, 2009, the premium on a two-year insurance policy on equipment was paid amounting to $1,800. How would the financial position as of December 31, 2009 (the end of the accounting period) be affected if the accountant did not record the adjusting entry?

Select one:

a. Assets overstated by $750; Liabilities unaffected; Owners' equity overstated by $750.

b. Assets understated by $1,500; Liabilities unaffected; Owners' equity understated by $750.

c. No accounts will be affected.

d. Assets understated by $750; Liabilities unaffected; Owners' equity understated by $750.

Reference no: EM132597796

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