Professional Documents
Culture Documents
CGS XX
Expected Questions Tracker
Recording as income the unearned income that will be earned in two years or
more
Error on depreciation
Non Counter Balancing Error
Recording as outright expense of prepaid asset consumable two years or more
Net income
Year of error
Year 1 Year 2 Year 3
Add back expense recorded XX - - Made
Net income
Year of error
Year 1 Year 2 Year 3
Deduct income recorded (XX) - - Made
Net income
Year of error
Year 1 Year 2 Year 3
Add back expense recorded XX - - Made
Net income
Year of error
Year 1 Year 2 Year 3
Add back depre. recorded XX XX XX Made
Net income
Year of error
Year 1 Year 2 Year 3
Add back expense recorded 330,000
XX - - Made
Working
Capital
Current Asset Direct
Current Liability Inverse
Numbers 04, 05 and 06
Working
Capital
Overstatement of inventory 40,500 over
Understatement of prepaid asset 110,000 under
Understatement of cash 75,000 under
Working capital 144,500 under
Unadjusted net income 120,000 88,000 104,000 120,000
Omission of prepaid expense 14,400 (14,400)
11,200 (11,200)
8,000 (8,000)
9,600
Omission of unearned income (6,400) 6,400
(4,800)
Omission of accrued expense (3,200) 3,200
(1,200) 1,200
(1,600) 1,600
(800)
Omission of accrued income 2,000 (2,000)
2,400
Overstated inventory (112,000) 112,000
(128,000) 128,000
Understated inventory 96,000 (96,000) 144,000
Numbers 07, 08, 09, 10, 11 and 12
Working
Capital
Understatement of prepaid asset 9,600 under
Understatement of unearned income 4,800 over
Understatement of accrued expense 800 over
Understatement of accrued income 2,400 under