Following Is a List of Errors Made During the Posting

question 170

Essay

Following is a list of errors made during the posting process.Indicate the exact dollar impact each error would have on total assets,total liabilities,and shareholders' equity.Complete the chart below by using (+)to indicate overstated,(-)to indicate understated,and (0)to indicate no effect.Transaction (a)is completed as an example.
a.A $200 credit to the Accounts Payable account was posted as $2,000.
b.A $50 debit to Cash was never posted.
c.A $550 credit to the Revenue account was credited to the Accounts Receivable account.
d.A $45,000 debit to the Land account was debited to an expense account.
e.A $200 payment on an account payable was credited to Accounts Receivable instead of Cash.
f.A $350 debit to the Dividends account was posted as $530.
b.
c.
d.
e.
f.

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Definitions:

Consumption

The total value of goods and services consumed by households and government within a country.

Disposable Income

The budget left for household savings and spending after the deduction of income taxes.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing basic necessities that individuals will purchase regardless of their income.

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.