The Following Accounting Errors Occurred in 20x3, but Were Not

question 85

Multiple Choice

The following accounting errors occurred in 20x3, but were not discovered until 20x4: Purchases for 20x3 overstated by = $400 Ending 20x3 inventory overstated by = $400
Depreciation expense for 20x3 overstated by = $400
The combined effect of these three errors caused 20x3 pre-tax income to be:

• A)Overstated by $800.
• B)Understated by $1,200.
• C)Understated by $400.
• D)Overstated by $400.

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Definitions:

Particle Nature

The characteristic of matter to exhibit properties of particles, including mass and discrete boundaries, observable in phenomena like the photoelectric effect.

Wave Nature

Wave Nature relates to the characteristics of particles, such as photons and electrons, to exhibit properties typical of waves, including interference and diffraction.

Blue Irises

Refers to a physical trait where the irises of the eyes have a blue pigment.

Iris

The iris is the colored part of the eye that surrounds the pupil and controls the amount of light that enters the eye by adjusting the size of the pupil.