Use the Following Information for Questions

question 17

Multiple Choice

Use the following information for questions.
Armstrong Inc.is a calendar-year corporation.Its financial statements for the years ended 12\31\10 and 12\31\11 contained the following errors:

-Assume that no correcting entries were made at 12\31\10, or 12\31\11.Ignoring income taxes, by how much will retained earnings at 12\31\11 be overstated or understated?

• A)$24,000 overstatement
• B)$21,000 overstatement
• C)$30,000 understatement
• D)$9,000 understatement

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Definitions:

Desirable Location

A geographic area considered attractive for living or business activities due to various factors such as accessibility, environment, or economic opportunities.

Unstable Work Opportunities

Employment situations that are irregular, unpredictable, and precarious, often without long-term security or benefits.

Hourly Wages

The rate of pay employees receive for one hour of work.

Market Equilibrium

A state in a market where supply equals demand, resulting in stable prices and no tendency for change until external factors impose it.