Which of the Following Relatively Small Misstatements Most Likely Would

question 27

Multiple Choice

Which of the following relatively small misstatements most likely would have a material effect on an entity's financial statements?

• A)An illegal payment to a foreign official that was not recorded.
• B)A piece of obsolete office equipment that was not retired.
• C)A petty cash fund disbursement that was not properly authorized.
• D)An uncollectible account receivable that was not written off.

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Definitions:

Credit Card

A payment card issued by a financial institution that allows the cardholder to borrow funds with the promise to repay, with interest, at a later date.

Relative Cumulative Frequency

A statistical measure that shows the proportion of observations below a particular value in a dataset.

Percentile

A measure that indicates the value below which a given percentage of observations in a group falls.

Frequency Distribution

A table or chart that gives each piece of data in the set and the frequency, or the number of times that it appears in the data set.