The Following Errors Were Discovered During January 20x3 (Prior to Any

question 153

Multiple Choice

The following errors were discovered during January 20x3 (prior to any reversing entries) : The accounting period ends December 31.What effect would these errors have on 20x3 pre-tax income?

• A) Overstated by $2,000
• B) Understated by $2,000
• C) Overstated by $1,000
• D) Understated by $1,000

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Definitions:

Obedience

The act of following directions or commands from those in authority, or the behavior of complying with or yielding to a request or instruction.

Conformity

The tendency to align one's beliefs, attitudes, or behaviors with those of a group, often as a result of real or imagined pressure.

Persuasion

The action or fact of convincing someone to do or believe something through reasoning or the use of emotion.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, standards, or social influences, often a result of real or imagined group pressure.