What is the effect of the foregoing errors (overstatement) on total assets ar December 31, 2025? Use the following information for the next three (3) questions:Silhouette Corporation reported profit for the year 2024 and 2025 at P550,000 andP700,000, respectively. Your audit of the company's account disclosed the need foradjustments as follows:2024 2025Overstatement of ending inventory due to error in pricing29,000 33,000Omission of depreciation on newly-acquired equipment15,000 15,000Understatement of commission receivable22,000 18,000A purchase of merchandise was not recorded until the following60.000year, and also was not included in the ending inventory

Errors can be of different types in accounting such as Error of ommission, error of commission,…

Answered: oing err

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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Similar questions

Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to another year. ii. Annual allowance is not given in the year of disposal. iii. Annual allowance may be granted if a qualifying asset is temporarily out of use. iv. Capital allowance is granted instead of depreciation for all assets.
Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification from FVPL to FVOCI (election) b. reclassification from FVOCI (election) to FVPL c. reclassification from held for trading equity securities to amortized cost d. reclassification from FVOCI (mandatory) to amortized cost
When an expenditure is made and it is treated as an expense but should have been capitalized, the resulting impact in the year of the expenditure would be: A. Assets would be overstated, net income would be understated. B. Both the assets and net income would not be affected. C. Assets would be understated, net income would be understated. D. Assets would be understated, net income would be overstated.
27-Which one of the following is an example for 'Deferrals'? a. Provision for doubtful debt b. Depreciation c. Unearned revenue d. Outstanding expenses
Bb4. Changed from an accelerated method to the straight-line method of depreciating assets is a Change in accounting estimate and is a Prospective method- does this need to be disclosed in the footnotes
Prior (Past) service cost is expensed immediately using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.
What categories of property, plant, equipment, and intangible assets does Targetreport in its January 30, 2016, balance sheet?
IFRS requires annual reviews of long-lived assets (other than goodwill) for reversal indicators. A loss may be reversed up to the newly estimated recoverable amount, not to exceed the initial carrying amount adjusted for depreciation. This is a significant departure from GAAP, so what are the financial statement implications? Is it a good thing or bad?
A company made a material error in calculating and reporting amortization expense in Year 1. The error was discovered in Year 2. The item should be reported as a prior period adjustment:
ccess the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:1. Obtain the relevant authoritative literature on recognition of contingent losses. What is the specific citationthat describes the guidelines for determining when an expense and liability should be accrued for a contingentloss?2. List the guidelines.
TRUE OR FALSE? The prior period will be affected if during the current year the management of an entity decides to classify a non currrent asset as held for sale.
Subject :accounting

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