JP Corporation Had Net Income of $1,000,000 for 2017

question 25

Multiple Choice

JP Corporation had net income of $1,000,000 for 2017.After issuing its financial statements,the company realized that it had failed to include inventory from one of its small warehouses for several years.Specifically,it forgot to include $20,000 on December 31,2016 and $30,000 on December 31,2017.Which of the following is TRUE regarding JP's 2017 net income?

• A)Net income was understated by $10,000.
• B)Net income was overstated by $10,000.
• C)Net income was understated by $30,000.
• D)Net income was overstated by $30,000.

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Definitions:

Competitive Scanning

The process of monitoring and analyzing the competitive environment to identify opportunities and threats.

Internal Competency Analysis

An evaluation process within an organization to identify and assess the strengths and weaknesses of its workforce’s skills and capabilities.

Dynamic Capabilities

The organization's ability to systematically renew competences, adapt to changing environments, and innovate processes and products.

Value Statement

A declaration that outlines an organization's core beliefs and principles, intended to guide its behaviors and decision-making processes.