When a business receives a bill from the utility company, a journal entry should be made even though the invoice will not be paid until the following accounting period. (True or False)?

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted (i.e., the entry was not made). Which of the following statements is true?

a. Net income will be understated (too low) for the current year.

b. Total liabilities and total assets will be overstated (too high).

c. The Balance Sheet and Income Statement will be misstated but the Statement of Retained Earnings will be correct for the current year.

d. Total assets will be overstated (too high) at the end of the current year.