If wages paid for installation of new machinery is debited to wages Account, it is:(a) An error of commission.(b) An error of principle.(c) A compensating error.(d) An error of omission.

Q: Which of the following errors would not prove the quality of the trial balance debits and credits?…

A: The trial balance is prepared to record the final balance of each account as debit and credit from…

Q: From the following figures, prepare a Reconciliation Statement: Net loss as per costing records Work…

A: After comparing the costing books and financial books ,the differences or causes of differences are…

Q: If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:…

A: Manufacturing overhead costs that have been allocated to units of a product over a given time are…

Q: If Manufacturing Overhead has a debit balance at the end of the period, then a. overhead has been…

A: The answer is Option (c) [overhead has been underapplied] Refer step 2 for explanation

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: O a. True O b.…

A: Factory overheads consist of -  Factory expenses like factory rente,  Factory insurance  Energy cost…

Q: Explain the accounting treatment required when a change is made to the estimated service life of a…

A: When a change is made to the estimated service life of a machine, then the accounting treatment for…

Q: If you fail to journalize and post the adjusting journal entry to depreciate equipment, what is the…

A: >Adjusting entries are recorded, as part of completion of accounting cycle. >These are…

Q: Which of the following accounts would be a period cost rather than a product cost?     Freight out.…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product

Q: rpose of the following control procedures (i.e., what threats is it designed to mitigate)? b.…

A: Following  are the Purpose of Control Procedures of Reconciliation of labor costs (based on job-time…

Q: In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing…

A: Manufacturing overhead means all indirect costs related to production or manufacturing of products.…

Q: What type of account as a new account title is maintained is spoiled work?

A: Bookkeeping, just characterized, is the technique wherein monetary data is assembled, prepared and…

Q: 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or…

A:

Q: Provide an argument explaining why expenses that were inadvertently omitted in a previous year…

A: The argument against this approach follows AASB 108 (Australian Accounting Standard Board-108) which…

Q: Before revenue can be recognized, the revenue recognition principle requires the _____. A. Product…

A: Revenue is the money earned by providing services or selling goods to customers. The Revenue…

Q: The entry to record depreciation is an example of an adjusting entry: a. to apportion a  recorded…

A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…

Q: The maintenance cost of a machine used in manufacturing process are not included in the cost of…

A: Maintenance costs on machine means expenses incurred to maintain the machine working condition. In…

Q: the --- account is credited to adjust for underallowcated overhead costs. A. sales revenue B.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: a. True b. False

A: Factory overheads include all the indirect expenses incurred in the production process.

Q: A transaction is not recorded by the accountant either wholly or partially in the books of accounts…

A: There are various errors that an accountant can commit while recording or posting financial…

Q: On a classified balance sheet, wages payable is classified as: a.a current liability. b.a long-term…

A: Wages payable: Wages company should pay them to employees but not paid by the company.

Q: Which of the following accounts would be a period cost rather than a product cost? a   Freight out.…

A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

Q: What is the adjusted balance of cost of goods sold after disposing the under-or-overapplied…

A: The balance of the manufacturing overhead control account is credit which means it is overapplied.

Q: Which of the following statements about materials is false? A. Acquisitions of materials are…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? a.…

A:

Q: a. If the balance is considered immaterial, prepare the necessary journal entry to closS the…

A: Solution:- a)Preparation of necessary journal entry to close the overhead account if the balance is…

Q: What is the adjusted balance of finished goods inventory after disposing the under-or over-applied…

A: Cost of goods sold: Cost of goods sold means cost of producing the goods which are being sold by…

Q: Which of the following errors does NOT prove the equality of the trial balance debit and credits? a)…

A: The trial balance shows the amount of assets, liabilities, revenues and expenses in a single…

Q: For each of the following situations, indicate whether itrepresents an accounting error and explain…

A: Answer:   Accounting error.

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? Group…

A: The correct option with proper explanation are as follows

Q: In the Excel, or spreadsheet, approach to recording financial transactions, indirect labor paid in…

A: Financial transaction is defined as an agreement, which used to carried out between the purchaser…

Q: a.   The adjustment for accrued wages of $5,410 was journalized as a debit to Wages Expense for…

A: Adjusted Trial Balance:   Adjusted trial balance is a trial balance prepared at the end of a…

Q: On the costs of goods manufactured schedule, depreciation on factory equipment. is not listed…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: An example of a nonproduction cost is   a.wages paid to assembly-line employees. b.manufacturing…

A: Cost of production means the addition of direct material , direct labor and factory overhead.…

Q: true or false questions

A: Adjusting entries are prepared at the end of the year to accrue the revenues and expenses accrued…

Q: If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:…

A: Overhead costs are the costs which are indirectly involved in the production process. These costs…

Q: For each of the following, identify which expense recognition approach should be used to recognize…

A: Expense Recognition Principle: Expense recognition principle emphasizes that the expense should be…

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? O No…

A: Accrued expenses are expenses that are recognised in the books of accounts before they have been…

Q: What is the ending balance in Finished Goods? (Show T-Account) Assuming that the company closes its…

A: Overapplied Overhead: If the actual overhead incurred in a period is less than the…

Q: Name the error which was made under the following circumstances: The purchase of the machinery on…

A: When machinery is purchased on credit . Machinery account is debited. It's wrongly debited to…

Q: The cost paid to a laborer to assemble a desk is recorded as an expense. Why is this false?

A: Labor cost: Cost of labor refers to the compensation in the form of wages made to labor for their…

Q: What is the appropriate name of the error which was made under the following circumstances: A…

A: Ledger is the secondary book where transactions are being transferred from the journal. It contains…

Q: Which of the following statements is true regarding over-applied manufacturing overhead? O over…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The Company Would make an adjusting entry for the underapplied overhead by debiting cost of goods…

A: When the manufacturing overhead applied are less than the actual manufacturing overhead are said to…

Q: When a company exchanges machinery and receives a trade-in allowance greater than the book value,…

A: Solution: When a company exchanges machinery and receives a trade-in allowance greater than the book…

Q: What is the effect of omission of prepaid expense in net income during the year of error? a.…

A: Prepaid expenses should be deducted from the particular expense to which it relates in the…

Q: If an asset account is credited, it indicates O An error. O An increase in the asset. O A decrease…

A: Increase in liabilities should be credited and decrease in liabilities should be debited.

Q: True or false Reclassification of an error will require an adjustment to the retained earnings…

A: Error and Omission of Error and treatment