Latone Company Began Operations in 2014

question 45

Multiple Choice

Latone Company began operations in 2014.During the first two years of operations,Latone made undiscovered errors in taking its year-end inventories that understated 2014 ending inventory by $40,000 and overstated 2015 ending inventory by $50,000.The combined effect of these errors on reported income is 2014 2015 2016

• A) understated $40,000 overstated $50,000 not affected
• B) understated $40,000 overstated $10,000 not affected
• C) understated $40,000 overstated $90,000 understated $50,000
• D) overstated $40,000 understated $50,000 overstated $10,000

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Definitions:

DeBeers Diamond Company

A large multinational corporation that specializes in diamond exploration, diamond mining, diamond retail, diamond trading and industrial diamond manufacturing sectors.

National Football League

A professional American football league consisting of 32 teams, divided equally between the National Football Conference (NFC) and the American Football Conference (AFC).

American Football League

A professional American football league that merged with the National Football League (NFL) in 1970, now known as the AFC within the NFL.

Monopoly Status

Monopoly Status describes a situation where a single company or entity exclusively controls a particular market or industry, lacking significant competition.