Which of the Following Is Not a Misstatement of the Financial

question 21

Multiple Choice

Which of the following is not a misstatement of the financial statements?

• A)The entity uses different inventory accounting methods for internal and external reporting.
• B)A departure from GAAP.
• C)The footnote for pensions is omitted.
• D)A clerk incorrectly based the allowance for doubtful accounts on 31% of sales as opposed to 13% of sales as determined by the controller.

---

Definitions:

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380nm to 750nm.

Saturation

The degree to which a color is pure, intense, or vivid; in psychology, it can also refer to the maximum degree of a feeling or quality.

Hue

A color or shade, representing the aspect of color which is determined by the wavelength of light.

Color Names

Labels given to specific wavelengths of visible light perceived by the eyes, aiding in their identification and classification.