Use the Following Information for Questions

question 54

Multiple Choice

Use the following information for questions.
Langley Company's December 31 year-end financial statements contained the following errors:

An insurance premium of $18,000 was prepaid in 2010 covering the years 2010, 2011, and 2012.The prepayment was recorded with a debit to insurance expense.In addition, on December 31, 2011, fully depreciated machinery was sold for $9,500 cash, but the sale was not recorded until 2012.There were no other errors during 2011 or 2012 and no corrections have been made for any of the errors.Ignore income tax considerations.
-What is the total effect of the errors on the balance of Langley's retained earnings at December 31, 2011?

• A)Retained earnings understated by $10,000
• B)Retained earnings understated by $4,500
• C)Retained earnings understated by $2,500
• D)Retained earnings overstated by $3,500

Understand the conceptual and calculative methods of mapping and interpreting the volatility of stocks and portfolios through graphical representation.

Understand the various models of sleep and their purposes.

Comprehend the impact of sleep and sleep deprivation on cognitive, emotional, and physical performance.

Recognize treatments and behavioral strategies for insomnia and other sleep disorders.

---

Definitions:

Buy-Side Marketplace

B2B model in which organizations buy needed products or services from other organizations electronically, often through a reverse auction.

Electronic Exchange

A platform or system that facilitates the trading of financial instruments, commodities, or other products through electronic systems without the need for physical trading floors.

Sell-Side Marketplace

B2B model in which organizations sell to other organizations from their own private e-marketplace or from a third-party site.

Cyber-Squatting

The practice of registering, selling, or using a domain name with the intent of profiting from the goodwill of a trademark belonging to someone else.