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Topic
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I reviewed this question several times but I cannot understand it, thanks in advance for your help!
Q) Which of the following cash transfers results in misstatement of cash at 12/31/20X7?
A) Disbursement recorded in books – 1/5/X8 , Deposit received in books 12/31/X7
Paid by bank – 12/31/X7 , Recorded and received by bank 1/4/X8
Becker explanation: This transfer results in a misstatement of cash, because the payment was not recorded in the period of deposit.
The following is a valid transfer (I don’t understand why this is valid either, sadly)
Disbursement recorded in books – 1/1/X8 , Deposit received in books 1/1/X8
Paid by bank – 12/31/X7 , Recorded and received by bank 12/31/X7
Thanks again!
B - (4/2012)
A - (5/2012)
R - (1/2012) Done!
F - (10/2011) Done!
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