Entole Company Began Operations in 2014

question 9

Multiple Choice

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

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

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Definitions:

Ewald Hering

A 19th-century German physiologist who proposed the opponent-process theory of color vision.

Young-Helmholtz Theory

A theory of color vision that proposes the eye detects colors through the relative rates of response by three kinds of cones, each one sensitive to different wavelengths of light.

Fine Detail

refers to the intricate and minute aspects of something, highlighting a high level of precision or complexity in its features or qualities.

Movement

Refers to change in position or location, often used in contexts ranging from physical activity to social change.