Arithmetical mistakes,use of inappropriate accounting principles,incorrect application of accounting principles,and disagreements about valuation or other estimates are the causes of ________.
A)fraud
B)misstatements
C)materiality
D)adjustments

Question

Quizplus · Accepted Answer

These causes are all potential sources of misstatements in financial statements. Misstatements refer to errors or omissions in financial statements that can be material or immaterial. These misstatements can occur due to miscalculations or the use or application of inappropriate accounting principles or estimates. Fraud is a deliberate act to deceive, steal or manipulate financial statements, which is not always the case. Materiality refers to the significance of misstatements and adjustments represent the changes made to address the misstatements in the financial statements.

Arithmetical Mistakes,use of Inappropriate Accounting Principles,incorrect Application of Accounting Principles,and