Under the Accrual Basis, Some Accounts in the Ledger Require

question 154

Essay

Under the accrual basis, some accounts in the ledger require updating at the end of the period. Discuss the three main reasons for this updating and give an example of each.

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Definitions:

Misrepresentation

The act of providing false, misleading, or inaccurate information with the intent to deceive or mislead.

Mistake

In legal terms, an erroneous belief, at contracting, that certain facts are true.

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party into a contract, resulting in harm or loss.

Express False Statement

An explicitly communicated untrue assertion, which can be a basis for a claim of deceit or fraud.