Powell Company Had the Following Errors Over the Last Two

question 89

Multiple Choice

Powell Company had the following errors over the last two years:
2014: Ending inventory was overstated by $30,000 while depreciation expense was overstated by $24,000.
2015: Ending inventory was understated by $5,000 while depreciation expense was understated by $4,000.
By how much should retained earnings be adjusted on January 1,2016? (Ignore taxes)

• A)Increase by $15,000.
• B)Decrease by $25,000.
• C)Decrease by $6,000.
• D)Increase by $25,000.

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Definitions:

Premack Principle

A principle in psychology which states that more probable behaviors will reinforce less probable behaviors.

Chaining

A behavioral technique involving linking together discrete behaviors to form a complex behavior sequence.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, through which an association is made between a behavior and a consequence for that behavior.

Ladder

A set of steps or rungs between two vertical bars, used for climbing up or down.