What Is the Effect of the Error on Berkshire's 12/31/2016

question 50

Multiple Choice

What is the effect of the error on Berkshire's 12/31/2016 balance sheet?

• A)There are no errors in the 12/31/2016 balance sheet.
• B)Assets understated by $600,000 and shareholders' equity understated by $600,000.
• C)Assets understated by $420,000 and shareholders' equity understated by $420,000.
• D)Liabilities understated by $180,000 and shareholders' equity overstated by $420,000.

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