Use the Following Information for Questions Through

question 157

Multiple Choice

Use the following information for questions through.Ignore taxes. Peach Inc.'s financial statements for the years 2014 and 2015 contained errors as follows:
-Assuming that NONE of the errors were detected or corrected, by what amount will retained earnings at December 31, 2015 be overstated or understated?

• A)$4,000 understated.
• B)$5,000 overstated.
• C)$8,500 understated.
• D)$11,500 understated.

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Definitions:

Positive Feedback Loop

A process in a system where the output enhances or amplifies an initial change, leading to further increase in the output.

Atomic Mass

The total mass of protons and neutrons in an atom, measured in atomic mass units.

Neutrons

Subatomic particles within an atom's nucleus, possessing no electric charge.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and defining the chemical element.