Just Before Preparing Financial Statements, an Inexperienced Accountant Recorded the Use

question 29

Multiple Choice

Just before preparing financial statements, an inexperienced accountant recorded the use of supplies by debiting supplies expense $100 and debiting supplies $100.Which of the following is most true?

• A)The transaction was recorded correctly.
• B)The unadjusted trial balance will be an effective internal control for detecting any error.
• C)The adjusted trial balance will be an effective internal control for detecting any error.
• D)Sequential transaction numbering will be an effective internal control for detecting any error.

---

Definitions:

IAS 34

Refers to the International Accounting Standard that guides interim financial reporting, requiring companies to provide timely and reliable information that is comparable over time.

Discreet Approach

A method of implementing changes or segments within a business or project in a separate, distinct manner, often used to monitor the success or failure of initiatives independently.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting.

Long-term Debt

Borrowings of a company not due for repayment within the next 12 months, typically in the form of loans or bonds.