If Undetected,what Is the Effect of This Error on Berkshire's

question 48

Multiple Choice

If undetected,what is the effect of this error on Berkshire's 12/31/2015 balance sheet?

• A)Assets understated by $600,000 and shareholders' equity understated by $600,000.
• B)Assets understated by $420,000 and shareholders' equity understated by $420,000.
• C)Assets understated by $600,000,liabilities understated by $180,000,and shareholders' equity understated by $420,000.
• D)None of the above is correct.

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Definitions:

Interindustry Competition

Competition between businesses in different industries that offer alternative or substitute products or services.

Aluminum

A silver-white, lightweight metal used extensively in products including containers, transportation, and building materials.

Power Transmission Lines

Infrastructure that carries high voltage electricity from power plants to substations near populated areas.

Homogeneous Oligopoly

A market structure where a few firms offer products or services that are similar and interchangeable.