At the End of 2014 It Is Discovered That the Accountant

question 102

Multiple Choice

At the end of 2014 it is discovered that the accountant for Gower Company failed to record $60,000 of interest payable which had accrued since the last interest payment date. The current ratio, quick ratio and debt ratio, as well as the financial statements, had already been computed using the erroneous data. Correction of the accounting records will have which of the following effects?

• A) Profit as formerly computed will not be affected by the correction of the error.
• B) The interest coverage ratio as formerly computed will not change as a result of the correction.
• C) The debt ratio as formerly computed will decrease as a result of the correction.
• D) The quick ratio as formerly computed will decrease as a result of the correction.

Discuss the relationship between income and happiness in the context of psychological well-being.

Explain the physiological mechanisms behind stress responses and their implications for health.

Understand the reasons behind the preference of friendships over family relationships in late adulthood.

Identify factors contributing to the decline in the average American family size and fertility rates.

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Definitions:

Occurred

An event or action that took place or happened, usually at a specific time and place.

False Alternative

A logical fallacy that presents a limited set of options when, in fact, more options exist.

Fallacy

A mistaken belief or error in reasoning, often leading to invalid arguments.

False Dichotomy

A logical fallacy that involves presenting two opposing options as the only possibilities, when in fact more options exist.