Widner Company Understated Its Inventory by $10,000 at December 31

question 100

Multiple Choice

Widner Company understated its inventory by $10,000 at December 31, 2010. It did not correct the error in 2010 or 2011. As a result, Widner's owner's equity was:

• A) understated at December 31, 2010, and overstated at December 31, 2011.
• B) understated at December 31, 2010, and properly stated at December 31, 2011.
• C) overstated at December 31, 2010, and overstated at December 31, 2011.
• D) understated at December 31, 2010, and understated at December 31, 2011.

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Definitions:

Situation

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Job Evaluation

A systematic process for assessing the relative worth of jobs within an organization to establish fair pay scales.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a desire to do a task well.

Self-leadership

The practice of influencing oneself to establish the self-direction and self-motivation needed to achieve personal or organizational goals.