Two Separate Errors Affected Satellite City in 2019

question 44

Multiple Choice

Two separate errors affected Satellite City in 2019. The beginning inventory was understated by $28,000 and the ending inventory was understated by $43,000. Net income in 2019 will be:

• A)understated by $15,000.
• B)understated by $71,000.
• C)understated by $43,000.
• D)overstated by $15,000.

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Definitions:

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.