IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL STATEMENTS.   The employees of the company are being paid on a weekly basis.     Does it have a: A. INCREASE effect B. DECREASE effect  C. NO EFFECT effect

Q: What is the impact on A Company financial statements if the company forgets to recognize that…

A: Unearned Revenue - Unearned Revenue is the revenue which is not earned by the company but amount…

Q: Business paid RO 280 rent expense was wrongly entered RO 200 in both the accounts. This type of…

A: The error of transposition is an error where the transaction value is recorded with the wrong value…

Q: Which of the following statements does not fit the job title? An accounting clerk works out…

A: Accounting clerks means that the person who use to pass out the regular accounting work including…

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: Requirements: a. What are the net effects of the errors on Rodney's 20x1 and 20x2 profit or loss,…

A: 1. Insurance Premium paid for 3 years (20*1, 20*2, 20*3) = ¶ 3,600  Insurance Premium paid for 1…

Q: 2. Which is a valid statement regarding recognition of liabilities? * a. A non-interest bearing note…

A: Liability means the amount which is to be paid to an outsider by business.  It is the present…

Q: when the company paid the wages payable in the next period the wages payable A/C will be in the…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…

Q: An example of an item that should be reported as a prior-period adjustment in a company’s annual…

A: Error correction:Error correction is an adjustment to previously issued financial statements. It is…

Q: Which of the following liabilities is created when a company receives cash for services to be…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: .Account titles of liabilities often include the term “payable.” b.Liabilities are debts owed to…

A: Liabilities-: A liability is the sum of the amount or a thing that a person or corporation owes,…

Q: Select all the items that are not relevant for decision making from the list below: A. Loss…

A:

Q: What type of disclosure or accounting do you believe isnecessary for the following items?(a) Because…

A: Disclosures: The additional information which is attached to the entity's financial statements and…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance

A: The correct answer is  b). Setting up of chart of accounts

Q: Are the following events recorded in the accounting records? Explain your answer in each case. A…

A: SOLUTION- Accounting records are key sources of information and evidence used to prepare, verify…

Q: he collection of customer’s account is credited to accounts payable. What is the effect of the error…

A: Answer) The correct Option is (D) No Effect Justifications: If collection from customer is credited…

Q: How many of the following statements regarding the Revenue Recognition and Matching Principles are…

A: The revenue recognition principle state that organizations should recognize the revenue when the…

Q: Which of the following is not contalned in the notes to the financial statements under (AS 1   a)…

A:

Q: For financial accounting purposes, the salary of Lake Company’s president is classified as…

A: Period costs: Period costs are the costs other than the product costs. These costs are not incurred…

Q: What is the net effect of the errors in FIERY’s December 31 retained earnings balance? A.…

A: Retained earning means the amount left in business after paying all expenses and dividend to…

Q: If the income statement error is discovered in the year of error, what action is to be done by the…

A: An error in income statement refers to posting an expense in the books in the wrong account such as…

Q: Which of the following is correct when bad debt expense is recorded at year-end? Group of answer…

A: Bad debt is an expense incurred by a firm when a customer's repayment of credit previously granted…

Q: A company’s management has uncovered events that indicate that substantial doubt exists that the…

A: The correct answer is Option (b).

Q: Choose the correct. A company’s management has uncovered events that indicate that substantial doubt…

A: The correct answer is Option (b).

Q: Which one of the following statements is true? Select one: O A. The user group of information from…

A: Financial accounting and management accounting are two branches of accounting. Financial accounting…

Q: Which statement is false? A. Revenues and expenses result from regular activities of the business.…

A: Revenue is the amount earned by an entity from its operating activities and expense is the money…

Q: A credit balance in which of the following accounts would indicate a likely error? a.Common Stock…

A: Normally all assets and expense accounts will have debit balance. All liabilities, capital and…

Q: Determine the effect of the following errors on a company's total revenue, total expenses, and net…

A: Meaning of Rectification of Errors The procedure of revising mistakes is known as “Rectification of…

Q: A small business in which credit sales fluctuate greatly from year to year uses the direct write-off…

A:

Q: The Days Sales Outstanding is important in determining the no. of days the suppliers are willing to…

A: The Days Sales Outstanding is a measure of the average number of days it takes credit sales to be…

Q: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…

Q: Accrued salaries decreases the liabilities of the company under the salaries payable account * O…

A: Accrued Salaries :  a) Accrued salaries means salaries which is required to be payable to the…

Q: Which of the following statements regarding liabilities is false?   Multiple Choice   A liability…

A: A liability is a present obligation due to past transactions & events for making payment in…

Q: c. Assuming you have checked this account and have detected that client did not record an expense…

A: given that, the client did not record an expense transaction of $60,000 for the accrued salary…

Q: In the following liabilities, the payee is known, however, the amount may have to be estimated.…

A: provision should be created for all the certain liabilities

Q: A debit to the FICA Taxes Payable accounta.  results in an increase in the cash account of the…

A:

Q: Failing to accrue expenses that have not been paid in cash will cause a company to report O a.…

A: Solution: As per accrual basis of accounting, all expenses are recognized when incurred and all…

Q: The payment of wages to employees was not recorded in Joyce’s Enterprises books. What type of error…

A: Errors can arise due to omissions  or commission  etc

Q: Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the…

A: When salaries are paid to employees, the following journal entry is required to be passed: Salaries…

Q: Which of the following should be disclosed as a note to financial. statements as a contingent…

A: A contingent liability is an unexpected liability arising from the past events. This is dependent on…

Q: The revenue recognition principle requires Time to be divided into annual periods to measure…

A: