What Is the Effect of the Following Error? $360 Was

question 73

Multiple Choice

What is the effect of the following error? $360 was received on account from customer. The accountant debited cash for $360 and credited Professional Fees for $360.

• A)Revenue was understated.
• B)Cash was understated.
• C)Revenue was overstated.
• D)Cash was overstated.
• E)Total assets were understated.

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Definitions:

Market for Coffee

The global or local marketplace where coffee, as a commodity, is traded, including its production, distribution, and consumption.

Long Run

Refers to a period in which all factors of production and costs are variable, allowing firms to adjust all inputs.

Own Price Elasticity

An index that illustrates the reaction of demand for a good to the adjustment in its price.

Price Elasticity of Supply

Price Elasticity of Supply measures how the quantity of a good supplied changes in response to a change in price, indicating how sensitive the supply of the good is to price changes.