Use the Following Information for the Following Questions:
Giselle

question 146

Multiple Choice

Use the following information for the following questions:
Giselle Ltd. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows:
$$\begin{array} { l l l } &2020&2019\\\text { Ending inventory } & \$ 2,000 \text { overstated } & \$ 3,000 \text { overtated } \\\text { Depreciation expense } & \$ 6,000 \text { understated } & \$ 12,000 \text { overstated }\end{array}$$
-Assume that no correcting entries were made at December 31, 2019, or December 31, 2020 and that no additional errors occurred in 2021. Ignoring income taxes, by how much will working capital, at December 31, 2021 be overstated or understated?

• A) $0
• B) $4,000 overstated
• C) $4,000 understated
• D) $6,000 understated

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Definitions:

Intrapersonal Conflicts

Psychological struggle within an individual that arises from competing needs or desires.

Power Networks

The structures and relationships within an organization through which power is exercised and exchanged.

Interrole Conflict

A psychological tension that arises when the demands of one role an individual occupies conflict with those of another role.

Intrarole Conflict

A psychological dilemma where an individual faces conflicting expectations related to a single role they occupy.