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NEW QUESTION: 1
The errors cause the reported retained earnings at December 31. Year 4, to be:
A. Overstated by US $25,000.
B. Overstated by US $65,000.
C. Understated by US $18,000.
D. Overstated by US $32,000.
Answer: D
Explanation:
The Year 3 inventory error reversed in Year 4excluding tax considerations) and therefore had no effect on reported retained earnings at December 31. Year 4, The US $15,000 inventory error at year-end Year 4 and the failure to accrue US $10,000 of expenses for Year 4 both overstated retained earnings as well as 4 year profit The omission of US $7,000 of depreciation overstated Year 3 net income and Year 3 and Year .1 retained earnings. Hence, the net effect of the errors on December 31, Year 4, retained earnings was a US $32,000$0 + $15,000 + $7,000 + $10,000) overstatement.

NEW QUESTION: 2

A. Option B
B. Option C
C. Option A
D. Option D
Answer: C

NEW QUESTION: 3
Are Tags searchable from standard Search component?
A. No
B. Yes
Answer: B

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