Use the Following Information for Questions Through

question 344

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 no correcting entries were made at December 31, 2014.Ignoring income taxes, by how much will retained earnings at December 31, 2015 be overstated or understated?

• A)$4,000 understated
• B)$6,000 overstated
• C)$6,000 understated
• D)$15,000 understated

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