Most audit firms use a schedule to accumulate the known and projected misstatements and the carryover effects of prior-year uncorrected misstatements. Which of the following statements regarding this process is false?
a. Adjustments made to correct the financial statements are referred to as booked.
b. Possible adjustments to the financial statements that are left uncorrected are referred to as waived.
c. Tax effects are not shown on schedules of correcting errors.
d. The nature of the misstatement, as well as the quantitative amount, is considered in the judgment of materiality.
c
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Both the debit and credit amounts for the income summary account must be extended in the work sheet
Indicate whether the statement is true or false
A job
a. encompasses a family of jobs. b. is your life's work. c. involves performing a designated set of responsibilities and duties for a specific employer. d. none of these choices.
Discount Mart, Inc, files a suit in a state court against Elements Computer Corporation, alleging that Elements breached a contract to sell 500 notebook computers to Discount. During the course of the suit, Discount files a motion for judgment on the
pleadings, Elements files a motion for a directed verdict, and both parties file motions for summary judgment. When and for what purpose are each of these motions made?
Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:
A. Debit Cash $312,000; credit Stock Liability $286,000; credit Common Stock $26,000. B. Debit Cash for $312,000; credit Common Stock $312,000. C. Debit Common Stock $26,000; debit Paid-in Capital in Excess of Par Value, Common Stock $286,000; credit Cash $312,000. D. Debit Common Stock $26,000; credit Cash $26,000. E. Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000.