Which One of the Following Errors Would Be LEAST Likely

question 56

Multiple Choice

Which one of the following errors would be LEAST likely to be discovered during the tests of the bank reconciliation?

• A) cash received by the client subsequent to the balance sheet date that was recorded as cash receipts in the current year
• B) failure to include a cheque that has not cleared the bank on the unpresented cheque list, even though it has been recorded in the cash payments journal
• C) the existence of payments on notes payable that were debited directly to the bank balance by the bank but were not entered in the client's records
• D) payment to an employee for more hours than he or she worked

Correctly journalize treasury stock transactions under the cost method.

Calculate and understand the impact of stock transactions on paid-in capital and retained earnings.

Know the accounting treatment for issuing stock for non-cash considerations such as services and land.

Understand the differences between common stock and preferred stock, including par value, stated value, and no-par stock.

---

Definitions:

Airport Explosive

A term referring to explosive materials or devices detected or mitigated in airport security measures.

TNT

Trinitrotoluene, a yellow crystalline compound used as an explosive, due to its ability to rapidly decompose and release energy.

Paint Thinner

A solvent used to thin oil-based paints or clean up after their use, typically composed of volatile organic compounds.

Gasoline

A volatile, flammable liquid mixture derived from petroleum, used primarily as fuel in internal combustion engines.