The Errors Listed Below Occurred in 20x3 but Were Not

question 89

Multiple Choice

The errors listed below occurred in 20x3 but were not discovered until much later in 20x4. The accounting period ends December 31. What net effect did these errors have on 20x3 pre-tax income?

• A) Overstated by $400
• B) Overstated by $800
• C) Understated by $400
• D) Understated by $1,200

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Definitions:

Medians

The middle value in a data set, which divides the set into two equal halves.

Mann-Whitney U

A nonparametric test used to compare differences between two independent samples.

Wilcoxon Rank Test

A non-parametric statistical test used to compare two related samples to determine if their population means ranks differ.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.