(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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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.
Give an example of an error or fraud that would misstate financial statements to affect the accounts as follows, taking each case independently. (Note: “Overstate” means the account has a higher value than would be appropriate under GAAP and “understate” means it has a lower value.)a. Overstate one asset; understate another asset.b. Overstate an asset; overstate stockholders’ equity.c. Overstate an asset; overstate revenue.d. Overstate an asset; understate an expense.e. Overstate a liability; overstate an expense.f. Understate an asset; overstate an expense.g. Understate a liability; understate an expense.
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
Which of the following statements is false? Group of answer choices A)The journal entry to record bad debt expense decreases current assets. b)The journal entry to record bad debt expense decreases retained earnings. C)The journal entry to write-off an uncollectible account receivable decreases operating income. D)The journal entry to write-off an uncollectible account receivable does not affect current assets. e)All the above statements are correct.
Which statement is incorrect concerning accounting estimate a.As a result of uncertainties inherent in business activities, many items in financial statements cannot be measured withprecision but can only be estimated. b.By its very nature, the revision of an estimate relates to a prior period and is a correction of an error. c.The use of reasonable estimate is an essential part of the preparation of financial statements and does not determinetheir reliability. d.An estimate may need revision if changes occur in the circumstances on which the estimate was based or as result ofnew information or more experience.
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May you please help me determine the effect on the accounting equation?
Which of the following is an example of a conservative accounting practice? a. Estimate the allowance for uncollectible accounts to be a larger amount.b. Do not write down inventory for declines in net realizable value (estimated selling price).c. Record a lower amount of depreciation expense in the earlier years of an asset’s life.d. Record sales revenue before it is actually earned.
27.A company writes off as uncollectible an account receivable from a bankrupt customer. The company has an adequate amount in its Allowance for Uncollectible Accounts. What would be the effect of this transaction in the company's financial statements? a. Operating expenses for the period will increase. b. Total current assets will decrease. c. Net profit for the period will not be affected. d. Net profit for the period will decrease.
Which of the following statements is false? Select one: O A. Management accounting statements need not comply with Accounting regulations O B. Financial accounting statements normally reflect more detail than would be found in management accounting reports O C. Management accounting reports emphasise future activities and future costs O D. Financial accounting data are directed primarily at external users rather than internal users.
"In the field of accounting, errors can occur at various stages of the financial reporting process, and it's crucial to identify and correct them to maintain the accuracy of financial statements. One common type of error is the error, which occurs when a transaction is recorded with the wrong amount or in the wrong account, leading to discrepancies in the balance sheet and income statement. Another type of error is the error, where a transaction is completely omitted from the accounting records, resulting in an imbalance between the debit and credit sides of the accounts. Furthermore, errors can also occur when the same transaction is recorded twice, causing an overstatement of assets, liabilities, revenues, or expenses. Lastly,........ errors refer to errors in the timing of recording transactions, such as recognizing revenue or expenses in the wrong accounting period. These errors can distort the financial performance of a company and mislead stakeholders. In summary, identifying and…

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