Which of the Following Relatively Small Misstatements Would Most Likely

question 3

Multiple Choice

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

• 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 authorised.
• D)An uncollectible account receivable that was not written off.

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Definitions:

Classmates

Individuals who are enrolled in the same educational course or class.

Prejudice

A preconceived opinion or bias against someone or something, typically not based on reason or actual experience.

Self-Fulfilling Prophecy

A forecast that becomes a reality because of the mutual influence between how one thinks and acts, leading to its own fulfillment.

Postdecisional Dissonance

The psychological discomfort one feels after making a difficult decision, often leading to regret or rationalization of the choice.