For Each Independent Situation Given Below, Determine the Effect on Pretax

question 2

Essay

For each independent situation given below, determine the effect on pretax profit for each. Enter "+" to indicate pretax profit is overstated, "-" to indicate pretax profit is understated, or "NA" to indicate that pretax profit is not affected. $\quad$$\quad$$\text { Independent Situations }$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $\text { Effect on Pre-tax Profit }$$\begin{array} { | l | l | l | l | } \hline && 20 X1 & 20X 2 \\\hline \text { A. } & 20 \times 1 \text { ending inventory overstated } & & \\\hline \text { B. } & 20 \times 1 \text { ending inventory understated } & & \\\hline \text { C. } & 20 \times 2 \text { ending inventory overstated } & & \\\hline \text { D. } & 20 \times 2 \text { beginning inventory overstated } & & \\\hline \text { E. } & 20 \times 1 \text { beginning inventory understated } & & \\\hline \text { F. } & \begin{array} { l } 20 \times 2 \text { beginning inventory understated and 20X2 } \\\text { ending inventory understated by the same amount }\end{array} & & \\\hline\end{array}$