Question
The new bookkeeper forgot to record the sale of merchandise that was made to a customer on account with 20% profit. What impact does this
The new bookkeeper forgot to record the sale of merchandise that was made to a customer on account with 20% profit. What impact does this have on the companys books?
| Cash is understated/Accounts receivable is understated/Inventory is overstated/Income statement is understated | ||
| Accounts receivable is understated/Inventory is understated/Income statement is overstated | ||
| Cash is overstated/Inventory is understated/Income statement is overstated | ||
| Accounts receivable is understated/Inventory is overstated/Income statement is understated | ||
| Cash is understated/Accounts receivable is overstated/Income statement is understated |
Please kindly help me out with this question and tell me the reason as well. Thanks.
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Construction Contractors AICPA Audit And Accounting Guide
Authors: American Institute Of CPAs
1st Edition
0870519751, 978-0870519758
