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.

---

Definitions:

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a widely used tool for measuring adult intelligence.

Mean Score

The arithmetic average of a set of numerical values, calculated by adding them together and dividing by the number of terms in the set.

Stanford-Binet

A standardized test that assesses intelligence and cognitive abilities in individuals, originally developed to measure intelligence in children.

Cohort Effect

Differences among groups of individuals that arise from being born and living in different time periods, affecting their beliefs, behaviors, and attitudes.