Notes to Financial Statements

Question 1

What’s the difference between errors and irregularities?

Answer 1

-Errors are unintentional while irregularities are are intentional

Question 2

What’s the difference between monetary and non-monetary items? Examples of each?

Answer 2

• Specific price of monetary items cannot change while those of non-monetary items can
• Monetary: Cash, most receivables, AP
• Non-Monetary: Inventory, Plant Assets, Liabilities payable in goods/services