Solution-Which effects of equal amount may also occur

Which effects of equal amount may also occur

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Reference no: EM132761490

Problem 1: If a transaction causes a liability account to increase, which of the following effects of equal amount may also occur?

A. An increase in profit

B. An increase in capital

C. An increase in an asset account

D. A decrease in an asset account

E. None of the above

Problem 2: A bookkeeper recorded wages for the month as a decrease to the Income account rather than as an increase to Wages Expense. This error will result in:

A. Overstated net profit for the period

B. Understated equity at the end of the period

C. Understated assets at the end of the period

D. Overstated assets at the end of the period

E. No effect on net profit of the period

Reference no: EM132761490

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Which effects of equal amount may also occur

Reference no: EM132761490

Reference no: EM132761490

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