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

question 106

Multiple Choice

The following errors were discovered during January 20x3 (prior to any reversing entries) .The accounting period ends December 31. What effect did these errors have on the 20x2 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:

Critical Incidents

Specific instances or events that significantly impact the operations or outcomes in a situation, often used for analysis in problem-solving or performance evaluation.

Rating

The process of evaluating or assessing something or someone, typically in terms of quality, quantity, or some form of measurement.

Leniently

Describes a permissive or indulgent approach, especially in the context of rules enforcement, suggesting a greater tolerance or flexibility.

Team Evaluations

Assessments of a team's performance, productivity, and effectiveness, often used to identify areas for improvement or to recognize achievements.