tate the effect of the following errors if OVERSTATED, UNDERSTATED, or NO EFFECT. NO. ERRORS EFFECT IN 1. Omission of accrued expense in year 2021 Retained Earnings, 12/31/2022       2. Omission of prepaid expense in year 2021 Net income of 2022        3. Omission of accrued income in year 2021 Asset, 12/31/2022      4. Omission of unearned income in year 2021 Income of 2022   5. Sales of 2021 recorded as sales of 2022 Retained Earnings, 12/31/2022   6. Purchases of 2021 recorded as purchases of 2022 Retained Earnings, 12/31/2022     7. Inventory, 12/31/2021 is overstated Net income of 2022    8. Inventory, 1/1/2021 is understated Net income of 2022      9. Depreciation of 2021 is understated Net income of 2022

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A:

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Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.