Answered: 29-Business paid RO 280 rent expense…

29-Business paid RO 280 rent expense was wrongly entered RO 200 in both the accounts. This type of error is a. Error of Omission b. Error of Commission c. Error of transposition d. Error of Principle

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 30RQSC

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Question

29-Business paid RO 280 rent expense was wrongly entered RO 200 in both the accounts. This type of error is

Error of Omission

Error of Commission

Error of transposition

Error of Principle

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23-Which of the following is an example of Error of Complete Omission? a. Salary of RO 200 was entered as RO 2000 in both the accounts b. Salary paid RO 200 was entered only in Salary account c. Salary of RO 200 was entered as RO 20000 in cash account d. Salary paid RO 200 was not entered in both the accounts
21 If the total debit balance equals the total credit balance on the trial balance, the accounting records may still contain errors. True or False
38-Which of the following error will be called as an Error of Commission? a. A transaction is posted wrongly in the books of accounts b. A Transaction is not recorded completely in the books of accounts c. A transaction is written partially in the books of accounts d. A transaction is written without knowing the fundamental knowledge of accounting
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26-Which of the following error will be called as an Error of Principle? a. A transaction is written partially in the books of accounts b. A Transaction is not recorded completely in the books of accounts c. A transaction is posted wrongly in the books of accounts d. A transaction is written without knowing the fundamental knowledge of accounting
The payment of supplier’s account is debited to accounts receivable. What is the effect of the error in the net income of the current period and in subsequent period? a. Understated b. Cannot be determined based on the given information c. No effect d. Overstated
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36- The journal entry to record uncollectible accounts expense under the allowance method is a. Uncollectible Accounts Expense Dr. and Accounts Receivable Cr. b. Accounts Receivable Dr. and Uncollectible Accounts Expense Cr. c. Uncollectible Accounts Expense Dr. and Allowance for Doubtful Accounts Cr. d. Allowance for Doubtful Accounts Dr. and Uncollectible Accounts Expense Cr.
1. What amount should be reported as accounts receivable on December 31?a. 1,300,000b. 1,426,000c. 1,280,000d. 1,220,000 2. What amount should be reported as allowance for doubtful accounts on December 31?a. 120,000b. 200,000c. 250,000d. 170,000
Requirements: a. What are the net effects of the errors on Rodney's 20x1 and 20x2 profit or loss, repesctively? b. What is the effect of the errors on Rodney's December 31, 20x2 retained earnings?