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

question 8

Multiple Choice

If undetected, what is the effect of this error on Berkshire's 12/31/2012 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:

Target Cell

In spreadsheet software, a specific cell that is designated for a particular purpose, such as the cell where a formula's result is displayed.

Changing Cells

Cells in spreadsheet software designated for modification, influencing the outcome of formulas or functions dependent on their values.

Constraints

Rules or limitations defined in programming, databases, or problem-solving scenarios that restrict the ways in which data can be manipulated or solutions can be achieved.

Data Validation Criteria

Rules or conditions set for data entry in spreadsheet cells or database fields to ensure the accuracy and consistency of data.