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Problem 1: When the auditors examined Kadous Co.'s balance sheet for 2006, they found that retained earnings were understated and liabilities were overstated. Which of the following errors could have been the cause?
a. Making the adjusting entry for depreciation expense twice. b. Failure to record accrued interest receivable on a note receivable. c. Failure to make an adjusting entry to record revenue that had been earned but not yet billed to customers. d. Failure to record the earned portion of fees received in advance. e. Failure to record accrued wages due to employees.
Directions:Completely answer each question below. In your answer, utilize evidence (cite and reference sources) and/or examples.
What amount may the Gotham Goliaths deduct for its annual insurance premiums
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