Error Corrections Flashcards
1
Q
What is the effect of cost that were incurred but not related to a job order or work in process NOT completed in Retained earnings? And If it was completed?
A
No Effect
If completed = COGS is understated which means Retained earnings is overstated.
2
Q
What error would result in an overstatement of current assets and stockholders equity?
A
Holiday Pay Expense for administrative employees is misclassified as manufacturing overhead.
