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:

Price Ceilings

A government-imposed limit on how high a price is charged for a product.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Demand To Supply

This term reflects the relationship and balance between consumer demand for goods and services and the supply provided by producers.

Decrease In Supply

A reduction in the total amount of a good or service that is available to consumers, often leading to higher prices.