A Company Erroneously Records a $50 Cheque Received from a Customer

question 40

Multiple Choice

A company erroneously records a $50 cheque received from a customer as $500 in its records.What must it now do when reconciling its bank statement?

• A) It must increase the balance per its records by $500.
• B) It must increase the balance per its records by $450.
• C) It must decrease the balance per its records by $500.
• D) It must decrease the balance per its records by $450.

Differentiate between negligence, fraud, and breach of contract in a professional context.

Understand the conditions under which professionals can be held liable for their actions and the defenses available to them.

Identify the role of auditing standards and the standard of care expected from professionals.

Comprehend the concept of privity and its implications for professional liability.

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Definitions:

Crude Death Rate

The number of deaths each year per 1000 members of the population.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Population Growth

The increase in the number of individuals in a population, often measured over a specific time period, and influenced by factors such as birth rates, death rates, and migration.

Demographic Transition Model

A theoretical model describing the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.