Answer:
An error is unintentional, whereas fraud is intentional.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).
An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.
Thus, an audit of historical financial statements most commonly includes the balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.
Hence, the statement which is the most correct regarding errors and fraud is that, an error is an unintentional that can happen to any financial expert, whereas fraud is intentional.
Answer: a. retained earnings was overstated and liabilities were understated.
Explanation:
Dividends are paid from the Retained Earnings so when a company announces a dividend, that dividend is to be deducted from the Retained earnings. As this was not done, the Retained earnings at year end are overstated.
As the dividends are not paid immediately, they become liabilities. With the relevant entries not made, the dividends were not recorded as liabilities which makes liabilities understated.
John buys a toy plane from a toy store. The money he pays the store <u>is injected back into</u> the economy through <u>the employee's wage </u>and the taxes paid by the store.
<span>Top Ramen is a brand of noodles that is widely considered to be an inferior good with a high salt content. What would happen to the equilibrium price and equilibrium quantity of Top Ramen if income went up and the price of salt decreased? If income went up, those who eat Top Ramen may decrease their amount they purchase because Top Ramen is commonly purchased by those who make a smaller amount of money. However, if the price of salt decreased, Top Ramen's price may decrease as well and those who continue to purchase will benefit from paying less money for the Ramen. </span>
Answer:
Date General Journal Debit Credit
Oct. 31 Cash $6,868
Notes receivable- R. Albany $6,700
Interest revenue $168
(($6,700 * 10% * 90/360)
