The Accountant Recorded Accounts Payable as $45,000 When It Should

question 50

Multiple Choice

The accountant recorded accounts payable as $45,000 when it should have been recorded as $4,500. This is an example of a ________________.

• A)matching error
• B)footing
• C)slide
• D)transposition

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Definitions:

Bargain Purchase

A transaction where an asset is purchased or acquired for significantly less than its estimated fair market value.

Indirect Costs

Expenses that are not directly traceable to a specific product or service but are necessary for the business's general operation.

Investment Account

An account held at a financial institution, brokerage, or investment firm that holds securities, cash, and other assets for investment purposes.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.