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:

Schizophrenia Disorder

A mental disorder characterized by disturbances in thought processes, perceptions, emotional responsiveness, and social interactions.

Hallucinogens

Drugs that cause profound distortions in a person's perceptions of reality, including visual and auditory hallucinations, often without delirium.

Mania

A mental state characterized by an excessively elevated mood, energy levels, and activity, often associated with bipolar disorder.

Grandiosity

An exaggerated sense of one's importance, power, knowledge, or identity, often found in personality disorders or manic episodes.