Use the Following Information for Questions

question 45

Multiple Choice

Use the following information for questions.
Hudson, Inc.is a calendar-year corporation.Its financial statements for the years 2011 and 2010 contained errors as follows:
-Assume that no correcting entries were made at December 31, 2010.Ignoring income taxes, by how much will retained earnings at December 31, 2011 be overstated or understated?

• A)$1,000 understated
• B)$5,000 overstated
• C)$5,000 understated
• D)$9,000 understated

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Definitions:

Gray Matter

Neural tissue, especially of the brain and spinal cord, that predominantly contains neuronal cell bodies, dendrites, and unmyelinated axons, involved in processing and integration of information.

Upper Limbs

The regions of the human body extending from the shoulders to the hands, including the arms, forearms, and hands.

Pia Mater

The delicate innermost layer of the meninges, the membranes that surround the brain and spinal cord.

Meninges

The three protective membranes that cover the brain and spinal cord.