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  • Please Indicate U - Understated, O - Overstated and N - No Effect

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    memejane
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    The document describes several accounting errors or omissions that occurred in 2017 and 2018, including failure to record prepaid rent and accrued interest receivable in 2017, understating beginning inventory in 2018, and failure to record a sale on account and amortization of a patent in 2017. It asks to indicate whether each error would result in understating, overstating, or having no effect on specific financial statement line items such as assets, liabilities, equity, revenues and expenses.

    Original Description:

    Errors - Audit

    Original Title

    Errors

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    The document describes several accounting errors or omissions that occurred in 2017 and 2018, including failure to record prepaid rent and accrued interest receivable in 2017, understating beginning inventory in 2018, and failure to record a sale on account and amortization of a patent in 2017. It asks to indicate whether each error would result in understating, overstating, or having no effect on specific financial statement line items such as assets, liabilities, equity, revenues and expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views1 page

    Please Indicate U - Understated, O - Overstated and N - No Effect

    Uploaded by

    memejane
    The document describes several accounting errors or omissions that occurred in 2017 and 2018, including failure to record prepaid rent and accrued interest receivable in 2017, understating beginning inventory in 2018, and failure to record a sale on account and amortization of a patent in 2017. It asks to indicate whether each error would result in understating, overstating, or having no effect on specific financial statement line items such as assets, liabilities, equity, revenues and expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Capital

    Revenue

    Assets
    Expense

    Net Income
    Expense

    Net Income

    Assets

    Liabilities

    Liabilities

    Capital
    Revenue
    Failure to record prepaid
    rent at the end of 2017

    Understatement of 2018
    Beginning inventory

    Failure to record accrued


    interest on notes receivable
    at the end of 2017

    Failure to record
    amortization of patent 2017

    Failure to record sale of


    merchandise on account at the
    end of 2018

    Failure to recognize unearned


    rent at the end of 2017

    Please indicate U – Understated, O – Overstated and N – No Effect

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