During the Audit of Montane Company's 2014 Financial Statements, the Auditors

question 93

Multiple Choice

During the audit of Montane Company's 2014 financial statements, the auditors discovered that the 2014 ending inventory had been overstated by $8,000 and that the 2014 beginning inventory was overstated by $5,000. Before the effect of these errors, 2014 pretax income had been computed as $100,000. What should be reported as the correct 2014 pretax income before taxes?

• A) $113,000.
• B) $87,000.
• C)$105,000.
• D)$97,000.

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Definitions:

Multiple Charts

Visual representations of data across several different types of charts or graphs, allowing for a comprehensive comparison or analysis.

Pizza Topping

Ingredients added on top of the pizza dough and sauce before baking, used to customize the flavor of the pizza.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion, with the arc length of each slice proportional to the quantity it represents.

Line Chart

A graphical representation of data where individual data points connected by straight lines show trends or changes over time.