Use the Following Information for Questions 55 and 56

question 4

Multiple Choice

Use the following information for questions 55 and 56.
Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 contained the following errors:
-Assume that the 2014 errors were not corrected and that no errors occurred in 2013. By what amount will 2014 income before income taxes be overstated or understated?

• A) $35,000 overstatement
• B) $15,000 overstatement
• C) $35,000 understatement
• D) $15,000 understatement

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Definitions:

Consistent Unfair Treatment

Continuous and uniform unjust behavior towards someone or a group, which can impact morale and performance.

Emotional Labour

The practice of manipulating one's emotional states and expressions to comply with the emotional criteria of a workplace.

Job Satisfaction Facet

Pertains to the aspects or dimensions contributing to an employee's overall satisfaction with their job, such as work conditions, pay, and personal growth opportunities.

Absence From Work

The instance of not attending work due to various reasons, including illness, personal matters, or vacations.