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:

Tangible Asset

Physical assets that can be seen and touched, such as machinery, buildings, and inventory.

Unskilled Workers

Laborers who possess no specific training or specialized skills and are typically employed in tasks that involve simple, routine activities.

Technology's Effect

The impact that advancements and applications of technology have on various aspects of society, businesses, and individual day-to-day activities.

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behaviors.