Author Question: A 1,500 payment for Rent Expense was incorrectly journalized and posted as a debit to Rent Expense ... (Read 354 times)

PhilipSeeMore · **on:** Jul 6, 2018

A 1,500 payment for Rent Expense was incorrectly journalized and posted as a debit to Rent Expense for 5,100 and a credit to Cash for 5,100 . The correcting entry, using the one-step method, would include a
a. debit to Cash for 1,500.
b. credit to Rent Expense for 3,600.
c. credit to Rent Expense for 5,100.
d. credit to Cash for 1,500.

Question 2

Research conducted by Churyk and Clinton (2008 ) identified certain tells or communication characteristics in the context of the management discussion and analysis section of annual reports, related to financial statement deception.

Which of the following characteristics is an indicator of such deception?
A) fewer words per sentences
B) fewer past-tense words
C) more optimistic words
D) more self-references

fromAlphatoOmega22 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

b

Answer to Question 2

A
Explanation: A) Research conducted by Churyk and Clinton (2008 ) identified certain tells or communication characteristics in the context of the MD&A section of annual reports, related to financial statement deception. Such characteristics include:
Significantly fewer colons
Fewer words per sentence
Fewer optimistic words
More words related to downward direction
Fewer words describing certainty
Fewer instances of the words note and see
Fewer self-references
More past-tense words
Fewer present-tense words