Mistakes in Clerical or Mathematical Errors That Are Not the Result

question 73

True/False

Mistakes in clerical or mathematical errors that are not the result of gross negligence are considered unilateral mistakes.

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Definitions:

Accounts Receivable

This refers to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Contra Expense Account

An account that is offset against an expense account on the income statement, effectively reducing the total expense reported.

Expense Account

A ledger account that records transactions related to costs incurred by a business in the process of earning revenue.

Adjusting Entry

An accounting record made at the close of an accounting period that assigns income and expenses to the correct period.