The Following Errors Were Made in 20x3: an Understatement of Purchases

question 56

Multiple Choice

The following errors were made in 20x3: an understatement of purchases of $500 and an understatement of ending inventory of $500.The net effect on the 20x3 ending amount of retained earnings is:

• A)$500 understatement.
• B)No effect, the errors offset.
• C)$1,000 understatement.
• D)No effect; the errors affect income, not retained earnings.
• E)$1,000 overstatement.

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Definitions:

Osteosarcoma

A type of cancer that originates in the cells that form bones, most commonly occurring in children and young adults.

Fibrosarcoma

A malignant tumor derived from fibrous connective tissue, often affecting the legs, arms, or jaw.

Trismus

A medical condition characterized by a reduced opening of the jaws caused by spasm of the muscles of mastication, often associated with infection or trauma.

Stomatitis

Inflammation of the mouth and lips, which can cause soreness and may include conditions like cold sores.