The Following Errors Were Discovered During January 20x3 (Prior to Any

question 30

Multiple Choice

The following errors were discovered during January 20x3 (prior to any reversing entries) The accounting period ends December 31.What effect would these errors have on 20x3 pre-tax income?

• A)Understated by $1,000
• B)Overstated by $1,000
• C)Understated by $2,000
• D)Overstated by $2,000

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Definitions:

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and are responsible for perceiving color and fine detail.

Rods

Photoreceptor cells in the retina of the eye that provide night vision and peripheral vision by detecting brightness and shades of gray.

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.

Color Blind

A condition characterized by the inability to see colors in the usual way, affecting the perception of colors.