Use the Following Information for Questions

question 30

Multiple Choice

Use the following information for questions.
Fairfax Inc. began operations on January 1, 2019. Financial statements for 2019 and 2020 contained the following errors: In addition, on December 31, 2020 fully depreciated equipment was sold for $ 7,200, but the sale was NOT recorded until 2021. No corrections have been made for any of the errors. Ignore income tax considerations.
-The total effect of the errors on Fairfax's working capital at December 31, 2020 is that working capital is understated by

• A) $ 100,200.
• B) $ 79,200.
• C) $ 46,200.
• D) $ 31,200.

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Definitions:

Fair Die

A die that has an equal chance of landing on any of its faces.

Probability

A gauge of the probability that an event will occur, expressed numerically between 0 and 1.

Manufacturing Process

The series of operations or stages involved in the production of goods, often involving the assembly or transformation of raw materials.

Probability

Probability is the measure of the likelihood that an event will occur, quantified as a number between 0 and 1.