Eagle Corp

question 39

Multiple Choice

Eagle Corp.is a calendar-year corporation whose financial statements for 2016 and 2017 included errors as follows: Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2016 or December 31, 2017.Ignoring income taxes, by how much should Eagle's retained earnings be retrospectively adjusted at January 1, 2018?

• A)$32,000 increase
• B)$8,000 increase
• C)$4,000 decrease
• D)$2,000 increase

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Definitions:

Prospects

Potential customers or clients who have shown interest in a company's product or service.

Abilities

The inherent physical or mental capacities individuals possess, which can vary widely and impact performance in various tasks or occupations.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.

New Product

A good or service that has recently been introduced to the market and was not available to consumers before.