Use the Following Information for Questions Through

question 435

Multiple Choice

Use the following information for questions through. Giselle Ltd.is a calendar-year corporation.Its financial statements for the years 2015 and 2014 contained errors as follows:
-Assume that the proper correcting entries were made at December 31, 2014.By how much will 2015 pre-tax income be overstated or understated?

• A)$2,000 understated
• B)$2,000 overstated
• C)$6,000 overstated
• D)$8,000 overstated

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Definitions:

Electroconvulsive Therapy

A medical treatment involving the induction of seizures in patients under general anesthesia, primarily used for severe depression and certain psychiatric conditions.

Severe Depression

A mental health disorder characterized by deeply entrenched feelings of sadness, hopelessness, and a lack of interest in life, significantly impairing daily functioning.

Systematic Desensitization

A behavioral therapy technique used to reduce phobias and anxieties through gradual exposure to the feared object or situation paired with relaxation exercises.

Snake Phobia

An intense, irrational fear of snakes, which can cause significant anxiety and avoidance behaviors.