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
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 Escobar
Mar 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.