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:

Customer Complaint

Refers to a formal expression of dissatisfaction or grievance from a customer about a product or service.

Company Policy

A set of guidelines and rules that dictate how various situations should be handled within a business, ensuring consistency and compliance.

Negative Response

A reply or reaction that expresses disagreement, refusal, or dissatisfaction.

Direct Message

A private form of communication between individuals or groups on social media or messaging platforms.