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How would the following errors affect the account balances and the basic accounting equation: assets = liabilities + owners' equity? How do the misstatements affect income? 1. The purchase of a truck is recorded as an expense instead of an asset. 2. A cash payment on accounts receivable is received but not recorded. 3. Fictitious sales on account are recorded. 4. A clerk misreads a handwritten invoice for repairs and records it as $1,500 instead of $1,800. 5. Payment is received on December 31 for the next three months' rent and is recorded as revenue.
Legal Aspects There is no law relating to branch accounts but examination problems under this heading are frequently linked to either partnership or company account problems. Ans
Content of accounts Periodical accounts should normally consist of: 1. Balance sheet of the whole trust; 2. Capital account; 3. Income account
difference between carriage inwards and carriage out wards
How to proceed on the analysis of investment putting in mind that there are many criteria in this respect:Net income per year, Cash flows, Device life of 7 years, 10% return on inv
Could you please read this article? I am confused what the shortcoming of this critical review.
Company A(lessee) will rent inventory for you for 3 years rather than buying it for the regular price of $240,000. Normally these units, which cost us $120,000 to produce, will las
Q. Explain bonus or capitalisation issues? A rights issue is a approach of raising finance via the issue of shares to existing equity shareholders. Consecutively to make such a
Q. What do you mean by Fiscal Year? Fiscal Year - Period of 12 consecutive months chosen by an entity as its ACCOUNTING period that may or may not be a calendar year. Fixed Ass
A of surat consigns goods to B of jaipur to be sold at or above invoice price.B is entitled to get a commission of 8% on sales at invoice price plus 25% of any surplus price reali
Illustration of change in profit sharing ratio A, B and C have been trading as equal partners having capital contributions of £400,000, £300,000 and £200,000 respectively. They
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