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      Question

      Which of the following is not an example of a material

      misstatement? 
      A Recording a transaction twice Correct Answer Incorrect Answer
      B Failing to record a significant transaction Correct Answer Incorrect Answer
      C Recording a transaction for the wrong amount Correct Answer Incorrect Answer
      D Recording a transaction in the wrong period Correct Answer Incorrect Answer

      Solution

      Recording a transaction in the wrong period may be a mistake, but it is not necessarily a material misstatement unless it affects the financial statements in a significant way. The other options are all examples of material misstatements that could have a significant impact on the financial statements.

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