Management is prone to overstate: a. accounts receivable and inventory. b. accounts receivable, but not inventory. c. inventory, but not accounts receivable. d. neither accounts receivable nor inventory.
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b. accounts receivable, but not inventory.
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c. inventory, but not accounts receivable.
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d. neither accounts receivable nor inventory.
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- What can be the effect of inventory errors on the financial reports? How can these errors be corrected?Which of the following accounts does not belong in the purchases and disbursement cycle? A. Prepayments B. Accounts Payable C. Sales returns and allowances D. Fixed AssetsWhich of the following is not a correct statement? Accounts receivable represents credit sale, and thus, cannot be collected until maturity. Accounts receivable mainly consists of promissory notes and credit sales. Accounts receivable is part of the current assets. Accounts payable mainly consists of purchase of inventory on credit and notes payable. Accounts payable is part of the current liabilities.
- Which income statement account(s) would be affected by a policy choice at the same time as the inventory balance sheet account. a. Bad debts expense b. Cost of goods sold expense c. Depreciation or amortisation expense d. Sales revenueH6. Lower of cost or market is an attribute used for the: a. initial measurement of accounts receivable b. subsequent measurement of inventory c. subsequent measurement of accounts receivable d. initial measurement of inventory Explain All wrong options and explain with full detailsWhich of the following accounts does not belong in the purchases and disbursement cycle? Group of answer choices a.Prepayments b.Accounts payable c.Sales returns and allowances d.Fixed assets
- How does an inventory error effect the financial statements?What makes the recording of inventory at its proper amount difficult on the financial statements?Why are sales, sales returns and allowances, bad debts, cashdiscounts, accounts receivable, and allowance for uncollectible accounts all included inthe same cycle?
- Which of the following items in the balance sheet does NOT have a constant relationship with sales in general when we use the percent of sale method to construct pro forma financial statements? Retained earnings Inventory Accounts receivables Accounts payablesWhich one of the following is not an accounting problem (issue) associated with accounts receivable? Group of answer choices Recognizing accounts receivable Depreciating accounts receivable Reporting accounts receivable Relieving accounts receivableWhich of the following accounts is not normally part of the revenue and collection cycle?a. Sales.b. Accounts Receivable.c. Cash.d. Purchases Returns and Allowances