The new bookkeeper forgot to record the payment of an accounts payable to a supplier. What impact does this have on the company’s books? No effect Cash is understated/the Income Statement is understated Cash is overstated/the Income Statement is overstated Cash is overstated/liabilities are understated Cash is overstated/liabilities are overstated

The new bookkeeper forgot to record the payment of an accounts payable to a supplier. What impact does this have on the company’s books? No effect Cash is understated/the Income Statement is understated Cash is overstated/the Income Statement is overstated Cash is overstated/liabilities are understated Cash is overstated/liabilities are overstated

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 6Q

See similar textbooks

Similar questions

Ceres Corporation made travel advances to the marketing team. Why are they considered nontrade receivables? The amounts are owed to the employees, not to the company. The amounts owed to the company did not result from selling goods or services. The amounts owed to the company are not from external parties. O The amounts owed will not cause a decrease in the Cash account.
Which of the following scenarios increases accounts payable? A customer fails to pay an invoice. A supplier delivers raw materials on credit. Office supplies are purchased with cash. None of the above
The companies dispose their accounts receivables due to a. Shortage of accounting staff b. Billing and collection expense are costly c. There are other ways to earn cash d. The accounts receivable are all good
Cougar Company credited cash for a prepayment. They did this because: a. Cash payment (or an obligation to pay cash) occurs before the expense recognition b. Cash 0ayment occurs after the expense is incurred and liability is recorded. c. Sales are delayed pending credit approval. d. Customers are unable to pay the full amount due when goods are delivered.
Which among the following are transactions that are settled by immediate cash payment and cash receipts. a. credit transactions b. cash transactions c. accounts d. financial statements What is the amount to be collected by the business from customer who receive the product or services with a promise to pay after some time? a. Supplier b. Creditor c. Accounts payable d. Accounts Receivable Expenses unpaid at the end of a given accounting period is known as _______. a. Bank overdrafts b. Accounts payable c. Unearned revenues d. Outstanding expenses When banks allowed the business to withdraw money even when the account has no funds is known as _______. a. Outstanding expenses b. Accounts payable c. Bank overdrafts d. Unearned revenues Which of the following basis of accounting realises revenue for part of the work completed ? a. Non Cash basis b. Cash Basis c. Production Basis d. Accrual Basis
A trial balance does not balance. The owner believes the following mistakes WOULD cause animbalance. Do you agree? (Answer TRUE or FALSE for each statement) A. The owner forgot to record a cash saleB. A credit sale was recorded as a debit to sales and a debit to trade receivablesC. When transferring the bank overdraft from the Cash T account it was entered on thedebit side of the trial balanceD. Rates expense of £500 was debited to rent expenses and credited to cashE. A payment to a supplier of £690 was entered to cash as £690 but to trade payables as£609
Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.
Which of the following statements is incorrect? A. The accrual method, which builds directly on the revenue and matching principles, ignores the timing of cash receipts or payments determining when to revenue or expenses. when recognize B. In accordance with the going concern assumption, the life of the business is presumed to be indefinite. C. Expenses are matched with revenues, not the reverse. D. In accordance with the unit of measure assumption, accountants normally revise the amounts to reflect the changing purchasing power of money due to inflation or deflation.
Which of the following misstatements would relate to the occurrence assertion? Cash payment shown on the payable ledger but not seen on the bank statement The individual checking the invoice is the same person making the payment to the supplier Cash payment on bank statement not reported on the payable ledger Cash received from suppliers for purchase returns reported in the next month instead of in the current month
If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off?
1. For the sales account overcast, shouldn't the sales account debited to reduce the amount by the overcast figure? 2. If there wasn't any entry into the Machine account which the cash used to buy the machine was recorded, the accounts going to be machine and suspense? 3. Amount received from Mr Anokye was recorded in the cash book but not his personal account so isn't the two accounts involved Mr Anokye account and suspense account?
What is incorrect here? Available Options Are: Accounts Payable, Accounts Receivable, Advertising Expense, Cash, Cash Short And Over, Collection Expense, Computer Equiptment, Delivery Expense, Discounts Lost, Intrest Earned, Janitorial Expenses, Merchandise Inventory, Mileage Expense, Micellaneous Expenses, Note Receivable, Office Supplies, Petty Cash, Postage Expense, Printing Expense, Rent Expense, Repairs Expense - Computer, Utilities Expense.

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

		No effect
		Cash is understated/the Income Statement is understated
		Cash is overstated/the Income Statement is overstated
		Cash is overstated/liabilities are understated
		Cash is overstated/liabilities are overstated