Use the Following Information for Questions

question 3

Multiple Choice

Use the following information for questions.
Giselle Ltd.is a calendar-year corporation.Its financial statements for the years 2018 and 2017 contained errors as follows:
-Assume that no correcting entries were made at December 31, 2017, or December 31, 2018 and that no additional errors occurred in 2016.Ignoring income taxes, by how much will working capital, at December 31, 2016 be overstated or understated?

• A)$0
• B)$4,000 overstated
• C)$4,000 understated
• D)$6,000 understated

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Definitions:

Data Analysis

The process of examining, cleaning, transforming, and modeling data to discover useful information, draw conclusions, and support decision-making.

Process Redesign

A method of improving business processes by analyzing and reengineering them for enhanced efficiency, effectiveness, and flexibility.

Dramatic Improvements

Significant positive changes or enhancements, often surpassing expectations.

Fundamental Rethinking

A profound reassessment of organizational processes and strategies to achieve dramatic improvements in performance.