The accountant for the Issenock Company did not record a purchase of merchandise on credit for the current year, but the merchandise was correctly included in the ending inventory. Assuming a periodic inventory system, how would assets, liabilities, and retained earnings be affected on the year-end balance sheet? Set Assets Liabilities Retained Earnings I. No effect Understated Understated II
Understated Understated No effect III. No effect No effect Overstated IV. No effect Understated Overstated ?
A) Set I
B) Set II
C) Set III
D) Set IV
D
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To determine whether any accounts receivable are pledged or assigned to others, the auditor would most likely perform which of the following procedures?
a. Examine subsequent collections. b. Test a sample of transactions to the general ledger. c. Review loan agreements and board of directors' meeting minutes. d. Derive an independent estimate of the allowance and compare it to pledged assets.
We cannot multiply an n × 1 matrix by an n × m matrix
Indicate whether the statement is true or false
The Palace Confectionary Co is a small business located in the northeastern United States. The owner of Palace Confectionary is calculating the projected costs for the coming year. There is rent for the building; salaries for the retail employees; raw materials of sugar, chocolate, and other ingredients; wrappers for packaging of individual pieces of candy; boxes; and radio advertising. Palace's ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.
A. sunk costs B. variable costs C. direct costs D. fixed costs E. marginal costs
Congress can control agency activities through the budget process
a. True b. False Indicate whether the statement is true or false