Use a "+" to Denote an Item Is Too High

question 117

Essay

Use a "+" to denote an item is too high as a result of an error,a "-" to denote too low,and a 0 to indicate no effect.What is the effect of each of the following errors on the financial statements of a company,which uses a periodic inventory system?

---

Definitions:

Endorsement

The signing of one’s name on the back of a negotiable instrument for the purpose of negotiating it to another.

Premiums

Payments made regularly to an insurance company in exchange for coverage, representing the cost of the insurance policy.

Co-insurance Clause

A provision in insurance policies requiring the policyholder to bear a portion of the loss by maintaining coverage of a specified percentage of the value of the property to receive full reimbursement.

Fireproof

The quality of being resistant to or capable of withstanding damage by fire.