(31) The accountant for a company mistakenly posted an asset amount as anexpense in the general ledger.What is the financial statement impact of this error?O Assets are too low, and retained earnings are too high.○ Assets are too low, and retained earnings are too low.Assets are too high, and retained earnings are too low.○ Assets are too high, and retained earnings are too high.口

Hello student! If an accountant mistakenly posted an asset amount as an expense: Assets will be…

Answered: (31) The accountant for a company…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter3: The General Journal And The General Ledger

Section: Chapter Questions

Problem 7E: Determine the effect of the following errors on a companys total revenue, total expenses, and net...

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Similar questions

Why is it expected that the initial debit and credit totals of the income statement accounts do not balance on a 10-column worksheet? Select one: a. None of the choices available. b. This is expected because the company should report an asset. c. This is not expected and it shows that there is definitely an error made. d. This is expected because the company should report an income or a loss.
Determine the effect of the following errors on a companys total revenue, total expenses, and net income. Indicate the effect by writing O for Overstated (too much), U for Understated (too little), or NA for Not Affected.
The accountant for Kerns company mistakenly posted an expense amount as an asset in the general ledger. What is the financial statement impact of this error?
1. Of the following, choose the one that describes a situation where liabilities and expenses are manipulated to make a company appear less profitable? A. Liabilities are capitalized to increase revenues. B. Failure to record insurance expense for the period. C. Failure to record employee payroll earned but not paid as of period end. D. Failure to record warranty costs when the facts suggest that disclosure is more appropriate accounting treatment. E. None of the above.
Determine the effect of the following errors on a company's total revenue, total expenses, and net income. Indicate the effect by selecting Overstated (too much), Understated (too little),or Not Affected.-----See the image for the question
The bookkeeper for your company made a mistake and forgot to accrue interest expense at the end of the year. This mistake would cause which of the following in the financial statements? Assets are overstated and expenses are understated. Liabilities are overstated and retained earnings are understated. Both liabilities and net income are overstated. Liabilities are understated and net income is overstated. Both assets and liabilities are understated.
WHICH STATEMENT IS FALSE?A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning retained earnings.B. Equity is also the net assets.C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings.D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the preference shares, the difference is charged to retained earnings.
A company has a history of losses and has a negative balance (a debit) in retained earnings. On the balance sheet, what should this account be called? Group of answer choices Retained earnings, with amount shown as a negative Accumulated deficit, with amount shown as a negative Negative retained earnings, with amount shown as a negative
If the entry to record sales on account is not posted: O Stockholders' equity will be overstated. O Assets will be understated. O Assets will be overstated. O Liabilities will be understated. O There will be no effect on the company's financial position.
5
May you please help me determine the effect on the accounting equation?
I need the answer as soon as possible

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