Determine the Effect of the Following Errors on the Financial

question 31

Essay

Determine the effect of the following errors on the financial statements. Code your answers as follows and do not leave any blank spaces:
O: If the error results in an overstatement of the financial statement component.
U: If the error results in an understatement of the financial statement component.
N. If the error does not affect the financial statement component.
Error 1: A company failed to record accrued wage expense at year-end.
Revenues_____
Expenses_____
Net income_____
Assets_____
Liabilities_____
Stockholders' equity_____
Error 2: A company failed to accrue revenue earned at year-end.
Revenues_____
Expenses_____
Net income_____
Assets_____
Liabilities_____
Stockholders' equity_____
Error 3: A company recorded revenue when cash was received from a customer for services to be provided in the future.
Revenues_____
Expenses_____
Net income_____
Assets_____
Liabilities_____
Stockholders' equity_____

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Definitions:

Behavior Therapy

A form of psychotherapy that focuses on modifying undesirable behaviors through conditioning and reinforcement.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious processes and childhood experiences.

Electroconvulsive Shock

A medical treatment involving the induction of a brief seizure in a patient through the application of a controlled electrical current to the brain, primarily used to treat severe depression.

Cognitive Therapists

Mental health professionals who focus on identifying and changing negative and dysfunctional thought patterns.