Eliza Company Discovered the Following Errors in 2016: · Ending

question 99

Multiple Choice

Eliza Company discovered the following errors in 2016: · Ending inventory at December 31, 2015, was understated by $2,000.
· Accrued expenses of $3,000 were not recorded at December 31, 2015.
Eliza reported net income of $45,000 for the year 2015. What is the amount of the corrected net income ignoring income taxes) for 2015?

• A) $45,000
• B) $40,000
• C) $46,000
• D) $44,000

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Definitions:

Marginal Cost Curves

graphical representations that show how the cost of producing one additional unit of a good or service varies with the quantity produced.

Price Taker

A price taker is a firm or individual who has no power to influence the prices in a market, taking the prevailing prices as given.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing to produce and sell at different price levels in the short term.

Marginal Cost

The expenditure required to produce one more unit of a product or service.