Due to the Sudden Resignation of the Accountant at Dupont

question 10

Essay

Due to the sudden resignation of the accountant at Dupont Electric Inc., the sales manager has prepared the annual financial statements, shown below: Instructions
a) Identify the errors in the financial statements.
b) Prepare corrected financial statements for Mason's Mechanics Inc.

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Definitions:

Securities Act of 1933

A U.S. federal law enacted to ensure more transparency in financial statements and to prevent fraud in the sale of securities, requiring that investors receive significant information about securities being offered for public sale.

Material Fact

An important fact that could influence a decision in a contract, negotiation, or legal case; its omission or misrepresentation could constitute fraud.

Omission

The act of leaving something out or not including something that should have been included.

Negligent Misconduct

Conduct that falls below the established standard of care, demonstrating a disregard for the safety or rights of others.