1. The credit amount of an entry to record the cash payment of a water bill was missed on posting. This error will cause A) total assets to be overstated. B) total assets to be understated. C) total equity to be overstated. D) total equity to be understated. 2. The balance in Accounts Receivable was $800,000 at the beginning of the year and $500,000 at the end of the year. Credit sales for the year totaled $2,400,000. During the year, $200,000 in customer accounts were written off. How much cash was collected from customers during the period? A) $1,900,000 B) $2,500,000 C) $2,700,000 D) $2,900,000 3. The statement of financial position approach to estimating uncollectible accounts does not A) take into consideration the existing balance in the Allowance for Impairment. B) utilize a percentage of probable uncollectible accounts for each age group of accounts receivable. C) stress the relationship between credit losses and net sales. D) tend to give a reliable estimate of uncollectible accounts because of the consideration given to the collectability of specific accounts receivable. 4. In Year 1 of a noncurrent asset's useful life, all of the following would result if the company used the declining balance method of depreciation instead of the straight-line method of depreciation to allocate the cost of this asset, except A) lower net income. B) higher annual depreciation expense. C) lower book value. D) lower estimated useful life.