During a Year-End Evaluation of the Financial Records of the Matthew

question 93

Multiple Choice

During a year-end evaluation of the financial records of the Matthew Company for the year ended December 31, 2016, the following was discovered:
· Inventory on January 1, 2016, was understated by $6,000.
· Inventory on December 31, 2016, was understated by $18,000.
· Rent of $20,000 collected in advance on December 29, 2016, was included in income for
2016.
· A probable, reasonably estimated contingent liability of $30,000 was not recorded as of
December 31, 2016.
Net income for 2016 before any of the above items) was $250,000. What is the corrected amount of net income for
2016? Ignore income taxes.)

• A) $300,000
• B) $208,000
• C) $212,000
• D) $218,000

---

Definitions:

Slavery

A system in which individuals are owned by others as property, lacking personal freedom and forced to perform labor or services without consent.

Women's Rights

The freedoms and entitlements claimed for women and girls in societies worldwide, often concerning issues like voting rights, work equality, and reproductive rights.

Traditional Christian Society

A community or society that adheres to Christian teachings and practices as they have been traditionally understood and followed, often emphasizing historical doctrines and morality.

Businesses

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits.