Given the following data:
Net Income is:
Select one:
a. Overstated $24
b. Understated $6
c. Overstated $16
d. Understated $15
e. Understated $14
Homework Answers
Solution:
Understated Sales returns = Income Overstated by $5
Overstated Ending Inventory = Income overstated by $4
Overstated Freight out = Income Understated by $15
Net effect on Net Income = $5 + $4 - $15 = - $6
Hence, Net income is understated by $6.
Hence option "b" is correct
Add Answer to:
Given the following data:
Net Income is:
Select one:
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c....
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1.Given:
Net Income is:
Select one:
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c. Overstated $6
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2.
Case Corp. had accounts payable of $100,000 recorded in the
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balance included the following recorded purchases on credit:
In Case’s December 31, 2012 balance sheet, the accounts payable
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c. $17,000
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2.
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Net Income is:
Select one:
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Determine the effect of the error on the following:
Select one:
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The Blotto Company made the following two errors in counting
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1.Given:
Net Income is:
Select one:
a. Understated $16
b. Understated $24
c. Overstated $6
d. Understated $26
e. Understated $10
2.
Case Corp. had accounts payable of $100,000 recorded in the
general ledger as of December 31, 2012. The Accounts Payable
balance included the following recorded purchases on credit:
In Case’s December 31, 2012 balance sheet, the accounts payable
should be reported in the amount of:
Select one:
a. $125,000
b. $92,000
c. $121,000
d. $79,000
e. $75,000
3....
1.
The Charleston Company purchases a machine on 1/1/18:
The book value at 12/31/20 will be:
Select one:
a. $16,250
b. $19,750
c. $17,000
d. $13,750
e. $22,500
2.
Given the following data:
Net Income is:
Select one:
a. Overstated $24
b. Understated $6
c. Overstated $16
d. Understated $15
e. Understated $14
3.
The Bozeman Company had current assets of $500 and current
liabilities of $400 prior to the following transactions:
1. Collection of an account receivable, $100
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Select one:
a. $38
b. $6
c. $12
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Determine the effect of the error on the following:
Select one:
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Select one:
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Understated 12/31/12 inventory by $2,000
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