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- What is the effect of omission of accrued income in assets at the end of the year of error? a. Understated b. Overstated c. Cannot be determined from the given information d. NO effectWhat is the effect of omission of accrued income in assets at the end of the year of error? O NO effect O Overstated O Understated O Cannot be determined from the given informationWhich of the following types of errors will not self-correct in the next year? Accrued expenses not recognized at year-end Accrued revenues that have not been collected not recognized at year-end Depreciation expense overstated for the year Prepaid expenses not recognized at vear-end
- What is the effect of omission of accrued expenses in assets at the end of the year of error? Group of answer choices a. No effect b. Cannot be determined from the given information c. Overstated d. UnderstatedWhat is the effect of omission of prepaid expense in retained earnings at the end of year 2? Group of answer choices a. No effect b. Cannot be determined from the given information c. Understated d. OverstatedWhat amount of doubtful account expense should Zee Company report for the current year? What total amount of expenses should X Company recognize in the fourth quarter? What total amount of loss on factoring should Y Company recognize in the current year?
- A. By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made for the above errors? B. Compute for the adjusted net income for the year 2021.What amount should be reported as net effect of the errors on retained earnings for December 31, 2021? a. 1150000 understated b. 1150000 overstated c. 900000 understated d. 900000 overstatedWhat is the effect of omission of prepaid expense in net income during the year of error? a. Overstated b. Cannot be determined based on the given information c. Understated d. No Effect
- Its omission at year end will result to understated net income. a. accrued expense and unearned income b. unearned income c. accrued income d. accrued expenseState the effect of the following errors if OVERSTATED, UNDERSTATED, or NO EFFECT. NO. ERRORS EFFECT IN 1. Omission of accrued expense in year 2021 Retained Earnings, 12/31/2022 2. Omission of prepaid expense in year 2021 Net income of 2022 3. Omission of accrued income in year 2021 Asset, 12/31/2022 4. Omission of unearned income in year 2021 Income of 2022 5. Sales of 2021 recorded as sales of 2022 Retained Earnings, 12/31/2022 6. Purchases of 2021 recorded as purchases of 2022 Retained Earnings, 12/31/2022 7. Inventory, 12/31/2021 is overstated Net income of 2022 8. Inventory, 1/1/2021 is understated Net income of 2022 9. Depreciation of 2021 is understated Net income of 2022 10. Interest income is recorded as Rent Income Net incomeWhat is the effect of omission of accrued income in retained earnings at the end of year 2? a. Understated b. No effect c. Overstated d. Cannot be determined from the given information