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Tom [10]
4 years ago
14

A company's financial statements may contain errors even if debits and credit balance because:

Business
1 answer:
emmasim [6.3K]4 years ago
6 0

Answer:

B. correct but equal amounts may have been posted to wrong accounts

Explanation:

It is possible that in the presence of the errors the debits and credits side remains balance.

Following errors may balance the debits and credits

  • Error of omission ( Transaction is totally omitted)
  • Error of commission (posting in wrong accounts by same value)
  • Error of Principle (Entry made against the principle of accounting)
  • Error of Original Entry (Wrong amount posted on both debit and credit sides)
  • Compensating error (Two errors compensate each others effect)

All of the above errors may present in case of balanced debit and credit sides.

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_______is a series of pre-booked, one-on-one interviews from a fixed location with a series of journalists or talk show hosts. G
Mariulka [41]

Answer:

Satellite Media Tour

Explanation:

A satellite media tour is the media tour that establishes the public relations with respect to the stories with the audience via television, radio, etc. It can be accessed from anywhere at any time.

Here, live interviews are also conducted that seems the cost effective and direct way to communicate with the audience

Therefore the given situation represents the Satellite Media Tour scenario

8 0
4 years ago
Which of the following statements is TRUE?
dedylja [7]

Answer:B. The portfolio of smaller stock are typically less volatile than individual small stock.

C. On average smaller stock have lower return than larger stock.

Explanation:

The larger stock most times have a higher volatility than smaller stock and usually have better records of performance, this therefore makes their returns higher than lower stock.

On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.

A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.

8 0
4 years ago
Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, wo
Natali [406]

Answer:

The use of a trial balance:

a) This error will not cause the two sides of the trial balance to disagree. A compensating error has occurred, because the Cash Account should have been credited and the Salaries and Wages Expense debited with $600.

b) This error will cause the two sides of the trial balance to disagree.  The amount debited is not the same amount credited.  The Accounts Receivable should have been credited with $900, not the Service Revenue.

Explanation:

a) The trial balance ensures that the total values of the debit and credit sides agree.  It shows that accounts have been correctly debited and credited in the general ledger, with equal amounts.

b) Compensating errors arise when two accounting errors offset themselves, because the same mistake made on the debit side is made on the credit side

7 0
3 years ago
Tessler farms has a return on equity of 11.28 percent, a debt-equity ratio of 1.03, and a total asset turnover of .87. what is t
Digiron [165]
<span>Return on equity = 11.28 percent = 11.28/100 = 0.1128
debt-equity ratio =1.03
total asset turnover = 0.87
return on assets = ?
we can find return on assets by using the formula
= return on equity / (1 + debt equity ratio)
= 0.1128 / (1 + 1.03)
= 0.1128 / 2.03
= 0.0556 = 0.0556 x 100 = 5.56%
So, the return on assets is 5.56%</span>
8 0
3 years ago
All of the following situations contribute to the need for a company to recognize deferred revenues, except for:
blondinia [14]

Answer: C) mutually unexecuted contracts between buyers and sellers.

Explanation:

Mutually Unexecuted contracts refer to a situation where both parties being the buyer and the seller have not executed their parts of the bargain or rather fulfilled their parts of the contract.

In such a case, even though legally, there is an obligation to perform due to the signing of a contract, Accounting wise, there is no need to record a liability.

This is why Mutually Unexecuted contracts do not contribute to the need to recognize deferred revenue.

7 0
4 years ago
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