Financing records should not contain errors; if they do, there are consequences. Identify the consequences of having the following. Owners added capital. This was only credited in the capital account. Payment for Sh 10,000 loan not recorded A bad debt was recorded by debiting the bad debt expense account but no entry was made in the debtor's account A motor expense was debited in the motor account and credited in the cash book A receipt of payment by a debtor was debited in the cash book but not recorded in the debtor's account Choose: assets, liabilities, and capital were overstated; assets overstated; liabilities understated ; no error; expenses overstated; capital overstated; assets understated; liabilities, understated and assets overstated; assets overstated and expense understated; asset overstated and liabilities overstated; capital understated;

Which error will be committed if motor vehicle expenses are recorded in the motor vehicle account?Question 1Answera.Error of principleb.Error of omissionc.Error of original entryd.Transposition error

Select all that applyWhat would cause a bank statement not to agree with the cash balance in the accounting records?Multiple select question.Deposits outstanding that have been recorded on the company's records, but not on the bank's.The company wrote checks that have cleared the bank.The company made an error in recording a deposit.The bank paid interest that the company has not recorded.The bank made an error in recording a deposit made by the company.

Provide the journal to correct each of the following errors:1) A cash sale of GHS10,000.00 was not recorded.2) Rates expense of GHS500.00, paid in cash has been debited to the rent account in error.3) A non-current asset purchase of GHS10,000.00 on credit has been debited to the repairsexpense account rather than an asset account.4) Goods purchased at a cost of GHS950.00 paid in cash has been debited to the salesaccount.5) A cash sale of GHS7600.00 has been recorded as GHS6700.006) A cash sale of GHS2000.00 has been debited to sales and credited to cash.

Select the most appropriate RISK addressed by the following control performed in the acquisitions and payments cycle:  An employee independent of the banking functions and the creditors’ department performs a monthly bank reconciliation of the cash book to the bank statement.a.Incorrect payment made to creditorb.Unauthorised paymentsc.Payment amount recorded inaccuratelyd.Payment made to fictitious creditors

Explain the concept of doubtful accounts and the accounting treatment for them. Discuss the potential consequences of not accounting for doubtful accounts accurately on a company's financial statements. Provide examples from the case