Activity 13. Determining the Effects of Omissions. For each of the following situations, statethe effect to total assets whether it is overstated or understated or not affected.a. Failure to recognize Interest income earned but not yet collectedb. Failure to recognize the expired insurance.C. Accrued interest on loans was omitted.d. Failure to recognize depreciation.e. Taxes incurred but not paid was not recorded.f. The earned portion of unearned revenue was not recognized.

Omission leads to Overstatement or understatement or have no effect on the total assets.

Answered: Activity 13. Determining the Effects of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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72. The effect of which is recognized directly in equity rather than in surplus or deficit Correction of current period error Effect of changes in accounting estimates Gair or losses on remeasuring available for sale financial assets All of these
Which of the following is a limitation of the direct write-off method of accounting for uncollectibles? a. The direct write-off method overstates assets on the balance sheet. b. The direct write-off method does not match expenses against revenue very well. c. The direct write-off method does not set up an allowance for uncollectibles. d. All of the above
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Why there is different depreciation method in accounting. Explain it by giving example about each method. ( 2- There are different receivable write off methods. Explain the differences between each method by given and example. 3- Explain the importance of capitalization on depreciation expenses by given an example. plagiarism not allowed
Which of the following is a limitation of the direct write-off method of accounting for uncollectible? The direct write-off method overstates assets on the balance sheet. The direct write-off method does not match expenses against revenue very well. The direct write-off method does not set up an allowance for uncollectible. All of the above
Bad debt expense is normally reported on the income statement as a(n) a. Operating expense b. Offset agaisnt gross c. Financial expense in the order items section d. Contra-revenue amount
Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C. Deferred revenue. D. An unused line of credit.
State how each of the following items is reflected in thefinancial statements.(a) Change from FIFO to LIFO method for inventoryvaluation purposes.(b) Charge for failure to record depreciation in a previousperiod.(c) Litigation won in current year, related to prior period.(d) Change in the realizability of certain receivables.(e) Write-off of receivables.(f) Change from the percentage-of-completion to thecompleted-contract method for reporting net income.
Which of the following expenditures would be included in the cost of a fixed asset? Oa. Sales taxes Ob. Vandalism Oc. Uninsured theft Od. Mistakes in installation
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