Determine the Effect of the Following Errors on the Financial

question 120

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 adjust the prepaid insurance account for insurance that was used during the period.
Revenues_____
Expenses_____
Net income_____
Assets_____
Liabilities_____
Stockholders' equity_____
Error 2: A company failed to record depreciation expense at year-end.
Revenues_____
Expenses_____
Net income_____
Assets_____
Liabilities_____
Stockholders' equity_____
Error 3: A company did not adjust the unearned revenue account for revenue earned during the year.
Revenues_____
Expenses_____
Net income_____
Assets_____
Liabilities_____
Stockholders' equity_____

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Definitions:

Color Code

A system where colors are used to represent numbers.

Wire-Wound

A type of resistor or inductor where wire is wound around a core to create a specific electrical resistance or inductance value, often used for precision components.

Power Rating

The rating of a resistor that indicates the number of watts that can be permitted without damage to the device.

Carbon Film

A type of resistor where a film of carbon is deposited on an insulating substrate, used for its predictable resistance properties.