An Error Caused by Recording $25,000 as $2,500 Is A(n)

question 61

Multiple Choice

An error caused by recording $25,000 as $2,500 is a(n) :

• A) switching error.
• B) embezzlement.
• C) slide.
• D) transposition.

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Definitions:

Accounts Payable

Financial obligations of a company towards creditors, resulting from goods and services acquired on a credit basis.

Unearned Revenue

Money received by a company for goods or services that have not yet been delivered or performed, considered a liability until the income is earned.

Cash

Money in the form of coins or banknotes, especially that held to conduct transactions or as part of a business's liquid assets.

Prepaid Insurance

An asset account that represents payments made in advance for insurance coverage, which is expensed over the period the insurance policy is in effect.