An Incorrect Debit to Accounts Receivable Instead of the Correct

question 170

True/False

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

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Definitions:

Check Deduction

A payroll or accounting action where a specific amount of money is subtracted directly from an employee's paycheck.

Bank Liability

The legal responsibilities and obligations a bank has towards its customers, such as ensuring the security of deposits and providing accurate account information.

Unauthorized Signatures

Signatures made without the express permission or authority of the person whose signature is required or expected.

Customer Signatures

Signatures of customers, typically collected for verification purposes, authorization, or agreement to terms and conditions.