QUESTION 15 The CPA firm auditing Denmark Company found that net income had been overstated. Which of the following errors could be the cause? Failure to record interest expense accrued on a note payable for the period. Failure to record payment of an account payable on the last day of the year. Failure to make an adjusting entry to record interest accrued on a note receivable. No entry made to record purchase of land for cash on the last day of the year. None of the above. QUESTION 16 One purpose of closing entries is to: Update the balance in the Cash account. Close the balance in Accumulated Depreciation Update the balance in Retained Earnings. Update the balance in Paid-in Capital None of the above