What Is the Effect of the Error on Berkshire's 2009

question 73

Multiple Choice

What is the effect of the error on Berkshire's 2009 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 2009 income statement.
• D)None of these is correct.Cost of goods sold is understated by $600,000 because the beginning inventory is understated.Net income is overstated by $420,000.

---

Definitions:

Energy Required

The amount of energy needed to perform a particular task or process, such as manufacturing a product or operating a machine.

Smelt Copper

The process of extracting pure copper by heating and melting copper ore to separate it from other elements.

Marginal Revenue Product

The extra income produced by using another unit of a production input.

Technology Improvement

Advancements or enhancements in technology that lead to better productivity, efficiency, or product quality in various sectors.