What Is the Effect of the Error on Berkshire's 2016

question 57

Multiple Choice

What is the effect of the error on Berkshire's 2016 income statement?

• A)Net income is understated by $420,000.
• B)Cost of goods sold is understated by $420,000.
• C)There are no errors in the 2016 income statement.
• D)None of these answer choices is correct.

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Definitions:

Insured Pay

Payments made to an insured individual under the terms of an insurance policy.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

No Health Insurance

Refers to the state of being without coverage for medical and health-related services, which can lead to financial hardship in the event of illness or injury.

Employer-provided

Benefits or services provided to employees by their employers, often including insurance, retirement plans, or subsidies.