Give the Correct Response to Each of the Following Events

question 116

Essay

Give the correct response to each of the following events:
(a)An overstatement of accrued wages payable by $2,000 at the end of 20x1 would cause retained earnings at the end of 20x2 to be ________ Overstated; ________ Understated by; correct
(assuming no correcting entry).
(b)A $6,000 purchase of merchandise on credit in 20x1 was not recorded in 20x1; but it was recorde in 20x2 when the cash was paid.It was discovered during 20x3.The merchandise was not included in the 20x1 ending inventory.Therefore, 20x1 income was: ________ Overstated; ________
Understated by; correct.
(c)The 20x2 ending inventory was Overstated $4,000 and no correcting entry has been made.Therefore the 20x3 net income is: ________ Overstated; ________ Understated by; ________
correct.

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Definitions:

Bodily-Kinesthetic

Refers to the intelligence that involves the use of the body to express oneself, solve problems, and create products or presentations.

Existential

Existential pertains to or is concerned with existence, especially human existence and the questions and issues related to it, such as purpose, freedom, and the nature of being.

Highest Level

The utmost degree or extent of something, often used in the context of performance or achievement.

Intelligence Instrument

A tool or test designed to measure cognitive abilities, including reasoning, problem-solving, and understanding complex ideas.