Use the Following Information to Solve the Following Questions:
Shanti

question 127

Multiple Choice

Use the following information to solve the following questions:
Shanti Inc. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows:
$$\begin{array} { l l l } &2020&2019\\\text { Ending inventory } & \$ 6,000 \text { overstated } & \$ 16,000 \text { overstated } \\\text { Depreciation experse } & \$ 4,000 \text { understated } & \$ 12,000 \text { overstated }\end{array}$$
-Assume that no correcting entries were made at December 31, 2019. Ignoring income taxes, by how much will retained earnings at December 31, 2020 be overstated or understated?

• A) $2,000 understated
• B) $18,000 understated
• C) $10,000 overstated
• D) $18,000 overstated

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Definitions:

Conflict

Describes a situation or process where opposing viewpoints, interests, or forces result in a state of tension or disagreement.

Team Performance

The effectiveness and efficiency with which a group achieves its goals, often evaluated through outcomes, processes, and group dynamics.

Collaborator

An individual or entity that works jointly on an activity or project, contributing skills, knowledge, and efforts towards a common goal.

Off Site

Occurring or located away from the main or original site, often referring to events or activities.