Multiple Choice
Laura Company received merchandise on December 31, 2010.Laura failed to record the purchase on account because the invoice was inadvertently destroyed.The merchandise was, however, included in ending inventory.The effect of this event on the financial statements as of December 31, 2010, would be
A) assets and liabilities would be understated
B) assets and owners' equity would be overstated
C) liabilities would be understated and retained earnings overstated
D) liabilities would be overstated and retained earnings understated
Correct Answer:
Verified
Correct Answer:
Verified
Q62: On January 1, 2010, Patti Company purchased
Q63: Wendy Co.made the following errors in
Q64: A change in accounting estimate is always
Q65: The mandatory adoption of a new accounting
Q66: The 2010 and 2011 financial statements for
Q68: Exhibit 23-1 On January 1, 2010, the
Q69: Exhibit 23-5 Nan Company, having a
Q70: Generally accepted methods of accounting for a
Q71: Changes in accounting entities that require retrospective
Q72: The correct 2010 net income for Margie