Describe the accounting for correction of errors.

Q: Explain receivables conversion period

A: It is the time interval connecting the sale of the last item using a credit card and cash receipts…

Q: How do automated authorization procedures differ from manual authorization procedures?

A:

Q: Define Errors.

A: Accounting error means occurrence of mistakes which are committed while recording the transactions…

Q: dvance and crec

A: As per standard accounting procedures revenue is to be recognized when it is earned and not when it…

Q: Give one example of an error that a check digit control detects.

A:

Q: Describe direct and indirect mehods of reporting.

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: How efficient is an Analysis at the account level technique?

A: The question is to discuss efficiency of financial analysis at account level or based on the data…

Q: For each of the following independent scenarios, indicate the effect of the error (if any) on:

A: Step 1 Journal is the part of book keeping.

Q: How are errors corrected if they're not properly accounted for?

A: The errors can happen as all the things are human oriented. The error can happen as the process of…

Q: Describe the accounting for correction of errors.

A: The accounting for correction of errors will be explained:

Q: In correction of combined errors, you need to be careful with counterbalancing and non-…

A: Counter Balancing Errors If the effect of an error in one account is cancelled by the effect of one…

Q: Discuss the correction of errors in more detail.

A: Errors in Accounting: Error is a mistake committed in book keeping.

Q: Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.

A: Difference:Counterbalancing errors are the type of errors that cancels out or equalize other error…

Q: Expense recognition is implemented by one of four different approaches, depending on the nature of…

A:

Q: Define expense recognition principle

A: Expense recognition principle says that all expenses for the particular period must be recognized in…

Q: Calculate the missing values +

A: Net income is the income which has been earned by the company during the year when all the expenses…

Q: Of what merit is the contention that the allowance methodlacks the objectivity of the direct…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: Define and describe auditsampling for exception rates

A: Audit sampling: Audit sampling can be defined as the selection of items from a population to be used…

Q: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: Explain the difference between contract assets, contract liabilities, and accounts receivable.

A: Account receivable: The amount of money to be received by a company for the sale of goods and…

Q: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.

A: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.…

Q: Which is an error of omission

A: Accounting error is error in entering, computing, and analysis of data. This includes the recording…

Q: Name the error which was made under the following circumstances:

A: The error of omission is a type of error that takes the account of results caused due inactions or…

Q: How would you find errors in recording transactions and what is the process to correct errors?…

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: Define Current Receivables.

A: Current receivables are recorded under current assets of the company.

Q: The correction of errors is the situation that creates prior period adjustments. Explain what are…

A: Prior period adjustments:   The corrections or adjustments that are made to the current year…

Q: Explain the errors in trial balance.

A: Trial balance:   A trial balance is the summary of all the ledger accounts. The trial balance is…

Q: Inspector expenses and other expenses that are designed to ensure quality or uncover defects are…

A: Company starts processing of work after some planning of costs, revenue or processes to be followed.…

Q: Counter balancing error is sometimes referred to as: which of the following? a Compensating errors…

A: Rectification entry means where some error has been done in past and we need to rectify that errors.…

Q: Describe the steps to be taken to correct an error.

A: Accounting Error:   It is an unintentional mistake in recording an accounting entry and is…

Q: Discuss the three common methods of handling errors in transaction files.

A: Errors in the books of accounting should be corrected as soon as possible, so that the financial…

Q: How to calculate breakeven balance

A: Break even analysis explains how much total revenue is required to cover both the fixed and variable…

Q: Identify and explain the various stages of and parties to the collection of a check.

A: Cheque refers to a financial document which acts as an order to a bank to pay a particular amount of…

Q: Describe the expense recognition principle (matching principle).

A: The expense recognition principle states that expenses should be recognized in the same period as…

Q: Define risk of material misstatement.

A: Material misstatement represents the statement presented in the financial statement which is…

Q: Describe the problems that might come from using an incorrect bill of material in MRP.

A: About Bill of Material Once of the most significant master data elements of any manufacturing ERP…