Two Separate Errors Affected Rollings Company in 2018

question 98

Multiple Choice

Two separate errors affected Rollings Company in 2018. The beginning inventory was overstated by $12,000 and the ending inventory was overstated by $18,000. Net income in 2019 will be:

• A)overstated by $30,000.
• B)understated by $18,000.
• C)overstated by $18,000.
• D)overstated by $6,000.

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Definitions:

Lawyer And Client

The professional relationship between a lawyer and their client, characterized by trust, confidentiality, and the obligation to work in the client's best interests.

Salesperson And Customer

The relationship and interaction between an individual who sells products or services and the individual who buys or is intending to buy those products or services.

Mutual Mistake

A situation where all parties involved in a contract are mistaken about a fundamental fact at the time of contract formation, potentially making the contract voidable.

Risk Of Mistake

A legal principle concerning the risks associated with the potential for misunderstanding or miscommunication in the terms of a contract or agreement.