Below are three errors that Brady Company discovered in 2022 after the financial statements for 2021...

 

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Below are three errors that Brady Company discovered in 2022 after the financial statements for 2021 were issued: Error 1: $25,000 in accounts payable was classified as notes payable in 2021. Error 2: $50,000 in selling expenses were classied as general and administrative expenses in 2021. Error 3: $45,000 in interest revenue was recognized in 2021 when received, but should have been accrued in 2020. Which of the following classifications combinations correctly describes the underlying nature of all three errors? OA OB. OC OD. Error 1 Balance sheet error Error 1 Income statement error Error 1 Balance sheet error Error 1 Income statement error Error 2 Income statement error Error 2 Balance sheet and income statement error Error 2 Balance sheet and income statement error Error 2 Balance sheet error Error 3 Balance sheet and income statement error Error 3 Balance sheet and income statement error Error 3 Income statement error Error 3 Income statement error Below are three errors that Brady Company discovered in 2022 after the financial statements for 2021 were issued: Error 1: $25,000 in accounts payable was classified as notes payable in 2021. Error 2: $50,000 in selling expenses were classied as general and administrative expenses in 2021. Error 3: $45,000 in interest revenue was recognized in 2021 when received, but should have been accrued in 2020. Which of the following classifications combinations correctly describes the underlying nature of all three errors? OA OB. OC OD. Error 1 Balance sheet error Error 1 Income statement error Error 1 Balance sheet error Error 1 Income statement error Error 2 Income statement error Error 2 Balance sheet and income statement error Error 2 Balance sheet and income statement error Error 2 Balance sheet error Error 3 Balance sheet and income statement error Error 3 Balance sheet and income statement error Error 3 Income statement error Error 3 Income statement error

Answer rating: 100% (QA)

Account payable is classified as note payable is a b... View the full answer