0.25\ A firm neglects to record depreciation on machinery it acquired. Ultimately the equipment is sold for a fraction of its original costs. After the equipment is sold The firm's accumulated earnings will be understated due to the failure to recognize depreciation expense.\ A prior period adjustment will not be necessary.\ The firm's accumulated earnings will be correctly stated.\ The firm's current period income will be overstated.\ Moving to another question will save this response.

A firm neglects to record depreciation on machinery it acquired. Ultimately the equipment is sold for a fraction of its original costs. After the equipment is sold The firm's accumulated earnings will be understated due to the failure to recognize depreciation expense. A prior period adjustment will not be necessary. The firm's accumulated earnings will be correctly stated. The firm's current period income will be overstated. Moving to another question will save this response. A firm neglects to record depreciation on machinery it acquired. Ultimately the equipment is sold for a fraction of its original costs. After the equipment is sold The firm's accumulated earnings will be understated due to the failure to recognize depreciation expense. A prior period adjustment will not be necessary. The firm's accumulated earnings will be correctly stated. The firm's current period income will be overstated. Moving to another question will save this response