Use the Following Information for Questions

question 39

Multiple Choice

Use the following information for questions.
Ignore taxes.
Peach Inc.'s financial statements for the years 2017 and 2018 contained errors as follows:
-Assuming that none of the errors were detected or corrected, and that no additional errors were made in 2019, by what amount will current assets at December 31, 2018 be overstated or understated?

• A)$2,000 overstated
• B)$10,000 understated
• C)$10,000 overstated
• D)$0

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Definitions:

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon.

Standard Deviation

An indicator that quantifies the extent to which values in a collection differ from the average, showcasing the degree of spread or divergence among the data points.

Mean

The arithmetic average of a set of values, found by adding them together and dividing by the number of terms.

Normal Distribution

Data points nearest to the mean occur more frequently in this symmetric probability distribution, with diminishing occurrences of data points as they deviate from the mean.