A credit to a Liability account was posted as a credit to an Expense account. This...
A credit to a Liability account was posted as a credit to an Expense account. This error would cause:
A. Expenses to be overstated.
B. Assets to be overstated.
C. Liabilities to be understated.
D. Liabilities to be overstated.
Homework Answers
Answer C) Liabilities to be understated
For example $100 was credited to rent expense instead of rent payable, so Rent payable ( Liability) would be understated.
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A credit to a Liability account was posted as a credit to an
Expense account. This...
A credit to an Asset account was posted as a credit to the Revenue account. This...
A credit to an Asset account was posted as a credit to the Revenue account. This error would cause: A.liabilities to be overstated. B.capital to be understated. C.revenue to be overstated. D.Both A and C are correct.
If the credit amount of an entry to record the payment of salaries was not posted,...
If the credit amount of an entry to record the payment of salaries was not posted, O A. expenses would be overstated O B. expenses would be understated O C. shareholders' equity would be understated O D. assets would be overstated
73. The freight paid on goods purchased F.O.B. shipping point was debited to the Freight Expense...
73. The freight paid on goods purchased F.O.B. shipping point was debited to the Freight Expense account. This error would cause: a. the period end assets to be understated b. the period end liabilities to be understated c. the period’s net income to be overstated d. None of the above. 74. The return of merchandise was recorded as a debit to Accounts Payable and a credit to Purchases. This error would cause: a. the period end assets to be understated...
A credit to an asset account was posted as a credit to a revenue account. This...
A credit to an asset account was posted as a credit to a revenue account. This error would cause: Group of answer choices assets to be more than should be. revenue to be more than it should be. expenses to be more than should be. Both A and B are correct.
A $6124 debit to utilities expense was incorrectly posted as a $630 debit. What is the...
A $6124 debit to utilities expense was incorrectly posted as a $630 debit. What is the effect of this error on the trial balance and the utilities expense account? Select one: a. The debit column of the trial balance would be $5494 too high and utilities expense would be understated by $5494 b. The debit column of the trial balance would be $5494 too high and utilities expense would be overstated by $5494 c. The debit column of the trial...
A bookkeeper erroneously recorded the accrual of revenue using this journa Sales Discount Depreciation Expense The...
A bookkeeper erroneously recorded the accrual of revenue using this journa Sales Discount Depreciation Expense The effect of this error on Total Expenses and Total Assets (respectively Select one: a. No Error, Understated Ob. Overstated, Understated c. No Error, No Error Od. Understated, No Error e. Understated, Understated The Vlasik Company declared an $8 cash dividend and recorded this journal entry (assume the amount is accurate, but not necessarily the accounts): Unearned Revenue Prepaid Insurance 58 Indicate the effect of...
8. The adjustment for depreciation expense was omitted, this would: A) overstate the period's expenses and...
8. The adjustment for depreciation expense was omitted, this would: A) overstate the period's expenses and overstate the period end liabilities. B) overstate the period's expenses and understate the period end liabilities. C) understate the period's expenses and overstate the period's assets. D) understate the period's expenses and understate the period's assets. 9. The income statement columns on a worksheet have subtotals as follows: debit column, $12,000, and credit column, $9,000. This indicates that: A) the company incurred a net...
1.Indicate the proper journal entry to record payment of a cash dividend previously declared: Select one:...
1.Indicate the proper journal entry to record payment of a cash dividend previously declared: Select one: a. Debit Cash, credit Dividend Payable b. Debit Dividends, credit Cash 2.A bookkeeper erroneously recorded a $7 accrual of wages payable using this journal entry: Sales Discount $7 Inventory $7 Indicate the effect of the error on Expenses, Assets, and Liabilities, respectively: Select one: a. No Error, Understated, No Error b. Overstated, No Error, Understated c. Understated, Understated, Understated d. No Error, No Error,...
If the prepaid expenses adjustment was not made, Select one: a. liability will be overstated, equity...
If the prepaid expenses adjustment was not made, Select one: a. liability will be overstated, equity understated and expenses understated. b. assets understated, equity understated and expenses overstated. c. assets overstated, equity overstated, and expenses understated. d. assets understated, equity understated and expenses understated.
9- An accrued expense amounting to $18,000 was overlooked when ascertaining the profit for the year....
9- An accrued expense amounting to $18,000 was overlooked when ascertaining the profit for the year. The effect of this error is that: a. net profit is overstated and liability understated. b.net profit as well as liability are understated. c. net profit as well as liability are overstated. d. net profit is not affected but liability is understated. 10- Staff salary remaining unpaid at year-end should be accounted for as: a. debit Pre-paid Salary account and credit Staff salary account....
If the credit amount of an entry to record the payment of salaries was not posted, O A. expenses would be overstated O B. expenses would be understated O C. shareholders' equity would be understated O D. assets would be overstated
A $6124 debit to utilities expense was incorrectly posted as a $630 debit. What is the effect of this error on the trial balance and the utilities expense account? Select one: a. The debit column of the trial balance would be $5494 too high and utilities expense would be understated by $5494 b. The debit column of the trial balance would be $5494 too high and utilities expense would be overstated by $5494 c. The debit column of the trial...
A bookkeeper erroneously recorded the accrual of revenue using this journa Sales Discount Depreciation Expense The effect of this error on Total Expenses and Total Assets (respectively Select one: a. No Error, Understated Ob. Overstated, Understated c. No Error, No Error Od. Understated, No Error e. Understated, Understated The Vlasik Company declared an $8 cash dividend and recorded this journal entry (assume the amount is accurate, but not necessarily the accounts): Unearned Revenue Prepaid Insurance 58 Indicate the effect of...
8. The adjustment for depreciation expense was omitted, this would: A) overstate the period's expenses and overstate the period end liabilities. B) overstate the period's expenses and understate the period end liabilities. C) understate the period's expenses and overstate the period's assets. D) understate the period's expenses and understate the period's assets. 9. The income statement columns on a worksheet have subtotals as follows: debit column, $12,000, and credit column, $9,000. This indicates that: A) the company incurred a net...
9- An accrued expense amounting to $18,000 was overlooked when ascertaining the profit for the year. The effect of this error is that: a. net profit is overstated and liability understated. b.net profit as well as liability are understated. c. net profit as well as liability are overstated. d. net profit is not affected but liability is understated. 10- Staff salary remaining unpaid at year-end should be accounted for as: a. debit Pre-paid Salary account and credit Staff salary account....
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