Use the Following Information for Questions

question 3

Multiple Choice

Use the following information for questions.
Fairfax Inc.began operations on January 1, 2016.Financial statements for 2016 and 2017 contained the following errors: In addition, on December 31, 2017 fully depreciated equipment was sold for $7,200, but the sale was NOT recorded until 2018.No corrections have been made for any of the errors.Ignore income tax considerations.
-The total effect of the errors on Fairfax's working capital at December 31, 2017 is that working capital is understated by

• A)$100,200.
• B)$79,200.
• C)$46,200.
• D)$31,200.

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Definitions:

Cognitive Processing

The mental actions or methods involved in acquiring knowledge and understanding through thought, experience, and the senses.

Concrete Elements

Physical components or parts that constitute the tangible structure of something, such as buildings or roads.

Early Maturation

Early maturation refers to the onset of puberty or the progression through developmental milestones at an earlier age than the typical range for one’s peer group, which can impact psychological and social adjustment.

Socially Approved Activities

Actions or behaviors that are accepted and valued by a society or community.