Asked by sandy mitchell on Mar 10, 2024

Verified

# Errors can occur for which of the following reasons?

I. Mistakes in applying accounting policies

II. Misinterpretation of facts

III. Mathematical mistakes

IV. Fraud

A) I, II, III and IV

B) I, II and III only

C) II, III and IV only

D) I and III only

Accounting Policies

The exclusive doctrines, fundamentals, customs, laws, and strategies adopted by a firm in assembling and revealing its financial documentation.

Mathematical Mistakes

Errors made in calculations, often due to incorrect addition, subtraction, multiplication, or division, affecting the accuracy of financial statements.

- Understand the reasons errors occur in financial statements and how they are addressed.

Verified Answer

CE

Cristian EscobarMar 10, 2024

Final Answer :

A

Explanation :

All of the options listed can lead to errors in accounting. Mistakes in applying accounting policies can lead to incorrect recording of transactions, misinterpretation of facts can lead to incorrect classification of items, mathematical mistakes can lead to incorrect calculations, and fraud can lead to intentional misrepresentation of financial information. Therefore, all four options are possible reasons for errors in accounting.

## Learning Objectives

- Understand the reasons errors occur in financial statements and how they are addressed.