Use the Following Information for Questions

question 65

Multiple Choice

Use the following information for questions.
Bishop Co.began operations on January 1, 2010.Financial statements for 2010 and 2011 con- tained the following errors:
In addition, on December 31, 2011 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2012.No corrections have been made for any of the errors.Ignore income tax considerations.

-The total effect of the errors on Bishop's 2011 net income is

• A)understated by $376,800.
• B)understated by $244,800.
• C)overstated by $115,200.
• D)overstated by $199,200.

Analyze the implications of situated cognition and how cognitive strategies adapt based on daily needs and expertise.

Understand the importance and application of inclusive language.

Grasp the concept and framework of diversity in society and workplaces.

Identify best practices for diversity initiatives and the goals of such efforts.

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Definitions:

Return On Assets

A profitability ratio that measures how efficient a company is at using its assets to generate earnings, calculated as net income divided by total assets.

Times Interest Earned Ratio

A financial metric that measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

Income Tax Payments

Payments made to government entities based on earned income and profits, an obligation for individuals and businesses.

Interest Expense

The cost incurred by an entity for borrowing funds, typically reflected in the profit and loss statement.