Dole Produce Ltd

question 36

Multiple Choice

Dole Produce Ltd. counted $700 of inventory twice in its December 31, 2010 inventory. On December 31, 2011, it mistakenly omitted $200 of merchandise from its inventory. As a result of these errors:

• A) net income is overstated by $700 in 2010 and understated by $200 in 2011.
• B) net income in understated by $700 in 2010 and overstated by $200 in 2011.
• C) net income is overstated by $700 in 2010 and understated by $900 in 2011.
• D) total net income for 2010 and 2011 is correct.

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Definitions:

52-Card Deck

A standard deck of playing cards comprising four suits (hearts, diamonds, clubs, spades), each with 13 ranks (from two to ten, and the face cards jack, queen, king, and ace).

Chances

Chances refer to the possibility or probability of something happening, often expressed in terms of likelihood or risk.

Not Be

Expresses negation, absence, or the non-existence of something or someone.

Compatible Events

Events in probability that can occur together without contradiction; they are not mutually exclusive.