Which of the Following Combinations of Errors Would Cause a $2,000

question 138

Multiple Choice

Which of the following combinations of errors would cause a $2,000 overstatement of pre-tax income?

• A) $4,000 Overstated by beginning inventory and $2,000 Understated by ending inventory
• B) $4,000 Understated by beginning inventory and $2,000 Understated by ending inventory
• C) $4,000 Overstated ending by inventory and $2,000 Understated by depreciation expense
• D) $4,000 Understated by depreciation expense and $2,000 Understated by beginning inventory

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Refers to properties or qualities that appeal to business interests or harbor potential for economic gain.

Coal

A combustible black or brownish-black sedimentary rock used primarily as a source of energy.

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A naturally occurring, yellowish-black liquid found beneath the Earth's surface, used primarily as a fuel source in its refined form.

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Energy that is produced and sold for profit, including fossil fuels, nuclear, and renewable energy sources used in industrial, commercial, and residential settings.