Use the Following Information for Questions

question 97

Multiple Choice

Use the following information for questions.
Shanti Inc.is a calendar-year corporation.Its financial statements for the years 2018 and 2017 contained errors as follows:
-Assume that the proper correcting entries were made at December 31, 2017.By how much will 2018 income before taxes be overstated or understated?

• A)$2,000 understated
• B)$2,000 overstated
• C)$4,000 overstated
• D)$10,000 overstated

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Definitions:

Q3

The third quartile in a data set, representing the value below which 75% of the data falls.

Q1

Stands for the first quartile in a data set, which is the median of the lower half of the data set.

Q2

Often refers to the median in the context of quartiles in descriptive statistics, which divides a data set into two equal parts.

Median

The middle value in a list of numbers, which separates the higher half from the lower half.