The Accountant of Zeus Legal Services Failed to Make an Adjusting

question 149

Multiple Choice

The accountant of Zeus Legal Services failed to make an adjusting entry for supplies that had been used for the year.Assume the supplies were initially recorded as an asset.Which of the following statements is true?

• A)The total liabilities will be overstated.
• B)The equity will be understated.
• C)The total assets will be overstated.
• D)The total assets will be understated.

Understand the principles of inferential statistics, including probability under the normal curve, and sample size implications.

Recognize the application and interpretation of confidence intervals and their importance in statistical analysis.

Identify the significance and application of nonparametric statistics when normal distribution assumptions do not hold.

Comprehend basic statistical tests (t-test, ANOVA) and their uses in comparing groups.

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Definitions:

Vertical Analysis

A financial analysis method that represents each item in a financial statement as a percentage of a base figure, enabling comparison and assessment of financial health over different periods.

Trend Analysis

A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Gross Profit

The financial metric representing the difference between revenue and the cost of goods sold, before accounting for other expenses.

Vertical Analysis

A financial statement analysis method where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.