A $300 Receipt of Cash on Account Was Recorded as a $500

question 82

Multiple Choice

A $300 receipt of cash on account was recorded as a $500 debit to cash and a $500 credit to accounts receivable. This error will cause:

• A)cash to be overstated $200.
• B)cash to be understated $500.
• C)cash to be understated by $800.
• D)accounts receivable to be overstated $500.

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Definitions:

Kantian Theory

A moral philosophy asserting that decisions should be based on whether the action would be acceptable as a universal law and respecting individuals as ends in themselves.

Deontological Theory

A moral philosophy where the morality of an action is based on its adherence to rules or duties, rather than the consequences of the action.

Utilitarian Theory

A normative ethical theory that suggests that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Deontological Theory

An ethical framework that judges the morality of an action based on its adherence to a set of rules, rather than the consequences of the action.