Use the Following Information for Questions

question 50

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, by what amount will retained earnings at December 31, 2018 be overstated or understated?

• A)$4,000 understated
• B)$5,000 overstated
• C)$8,500 understated
• D)$11,500 understated

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Definitions:

Strike

An action of unionized employees in which they (1) discontinue working for the employer and (2) take steps to prevent other potential workers from offering their services to the employer.

Product Market

The marketplace where final goods or services are traded, allowing businesses to sell their products directly to consumers or users.

Labor Market

The supply and demand for labor, where employers seek to hire workers and workers seek employment, influencing wages and employment levels.

Product Market

A commercial space where end products or services are presented to individuals, companies, and government entities.