A purchase discount was recorded as a credit to the

Reference no: EM13600788

1. A purchase discount was recorded as a credit to the Purchases account - the remainder was correctly recorded. This error will cause:
A) net income will be understated.
B) net income will be overstated.
C) total assets will be overstated.
D) None of these are correct.

2. The freight paid on equipment purchased F.O.B. shipping point was debited to the Freight-In account. This error will cause:
A) net income will be understated.
B) net income will be overstated.
C) total assets will be overstated.
D) None of these are correct.

3. A purchase discount that was earned and taken was never recorded. This error will cause:
A) total assets will be overstated.
B) net income will be understated.
C) net income will be overstated.
D) None of these are correct.

Reference no: EM13600788

Questions Cloud

On february 12 1998 brandon short and michael allen formed : on february 12 1998 brandon short and michael allen formed angler corporation to sell fishing tackle. pertinent

On january 2 2009 the deadra band acquires sound equipment : on january 2 2009 the deadra band acquires sound equipment for concert performances at a cost of 32500. the band

Marlin bowling installs automatic scorekeeping equipment : marlin bowling installs automatic scorekeeping equipment with an invoice cost of 350000. the electrical work required

Problem 3-2a preparing adjusting and subsequent journal : problem 3-2a preparing adjusting and subsequent journal entries l.o. c1 a1 p1.hormel co. follows the practice of

A purchase discount was recorded as a credit to the : 1. a purchase discount was recorded as a credit to the purchases account - the remainder was correctly recorded. this

Louder company has the option of purchasing part mno from : louder company manufactures part mno used in several of its truck models. a total of 10000 units are produced each year

Debate the necessity of preparing formal financial : debate the necessity of preparing formal financial statement if all of the data are in the statement columns of the

The sis company issued 600000 of 12 bonds on january 1 2008 : the sis company issued 600000 of 12 bonds on january 1 2008. the bonds were sold for 664190 and they were expected to

Suppose that apex healthservices has four difference : suppose that apex healthservices has four difference projects.these projects are listed below along with the amount of

User Account

All Pages