Given the Following List of Errors, Determine the Effect on Assets

question 41

Essay

Given the following list of errors, determine the effect on assets, liabilities, and shareholders' equity by completing the chart below. Use (+) to indicate overstated, (-) to indicate understated, and (0) to indicate no effect. Transaction (a) is completed as an example.
a. The entry to record the purchase of $800 of equipment on account was never posted.
b. The entry to record the purchase of $100 of supplies for cash was posted as a debit to Supplies and a credit to Accounts Payable.
c. A $1,000 debit to Cash was posted as $100.
d. A $400 debit to the Accounts Payable account was never posted.
e. A debit to Accounts Receivable of $500 was posted as a credit to Accounts Receivable.
b.
c.
d.
e.

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Definitions:

Collectivism

A cultural value that emphasizes group goals, interdependence, and the importance of community and family.

Collectivism

A cultural or societal orientation that emphasizes the group and its interests over the individual.

Individualism

Individualism is a social philosophy or ideology that emphasizes the moral worth of the individual, advocating for freedom of action and the importance of individual goals over collective ones.

Personal Privacy

The right of individuals to keep their personal information and activities confidential and free from unauthorized scrutiny.