What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

Q: A misstatement related to which of the following assertions means the dollar amount of the account…

A: Completeness represents that the financial statement of the company would be required to be…

Q: The purpose of testing the quality of debits and credits is to find errors recorded in the amounts.…

A: The purpose of testing the quality of debits and credits in accounting is to ensure that all…

Q: Give an example of an error or fraud that would misstate financial statements to affect the accounts…

A: Given: The example for the financial statement that would be misstated by the error or fault.

Q: Which of the following is not a characteristic of non-counterbalancing error? Group of answer…

A: Non counter balancing errors are those errors which will not be automatically corrected in the next…

Q: Explain why the ledger can still contain errors even through the trial balance is in balance. Give…

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

Q: When an uncollectible account is recovered after it has been written off, which of the following…

A: When an uncollectible account is recovered after it has been written off, allowance for doubtful…

Q: How should we account for the fact that not every account receivable is likely to be collected?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: how would management know if the calculations were entered incorrectly in any kind of reporting?

A: Accounting errors are inadvertent errors in accounting entries. When an error or mistake is…

Q: Describe the difference between errors and fraud in financial statements.

A: Definition: Auditor: The auditor is an accounting professional hired by a company to review the…

Q: (1) How does double-entry bookkeeping helpeliminate errors? (2) Why is accrual-based…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: What is tolerable misstatement? How do auditors use it when deciding whether account balancesare…

A: A Tolerable misstatement is the financial statement item amount that differs from the correct amount…

Q: in the field of accounting, errors can occur at various stages of the financial reporting process,…

A: Accounting errors are mistakes made in the recording, analysis, and reporting of financial…

Q: Assuming that the data collected in the accounting information system is free from material errors…

A: The information recorded in accounting system can face several risks like inherent risk and control…

Q: Which adjustments need to be recorded in the accounting records? Those that affected the bank…

A: Introduction: All the paperwork and books used to create financial statements or records necessary…

Q: Which of the following statements about confirming accounts receivable (A/R) and accounts payable…

A: Confirmations regarding the accounts balances are one of the important elements in determining the…

Q: Which of the following circumstances might indicate that management is manipulating the allowance…

A: There are several circumstances that might indicate that management is manipulating the allowance…

Q: 3. An auditor should perform alternative procedures to substantiate the existence of accounts…

A: Answer:-  Account receivable meaning:- The amount owned to a business for goods or services that…

Q: Which of the following statements is false? Group of answer choices A)The journal entry to record…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Which of the following statements is associated with analytical procedure test? a. It helps to…

A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…

Q: which of the following regarding errors is not correct Select one: a. unintentional misstatement of…

A: It is pertinent to note that Fraud is an intentional act by the Management, Those charged with…

Q: Where the correct accounts are used but each item is shown on the wrong side of the account is an…

A: Errors in the account books are the unintentional mistakes that the person preparing the account…

Q: Why is it necessary to account for dubious accounts in receivables accounting? Is it really…

A: As per prudence Principle :- always anticipate future losses but never anticipate future profit.…

Q: Define and give examples of off-balance-sheet information. Why should auditors be concerned with…

A:

Q: If the total of the schedule of accounts payable does not agree with the Accounts Payable balance,…

A:

Q: How can you tell the difference between accounting mistakes and accounting fraud in financial…

A: This question tells about the difference between accounting mistakes and accounting fraud in…

Q: Generally, test of details of transactions is used when account balances are affected by large…

A: Test of details of transaction: Testing of transactions which give rise to the ending balance of a…

Q: world, explain whether a current account deficit might be seen as a problem?

A: A current account deficit may imply the economy is becoming uncompetitive and the conversion scale…

Q: If the auditor concludes that there is a high likelihood of material misstatement in accounts…

A: Auditing means the independent checking of company operation by outsider.