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The Errors Listed Below Occurred in 20x3 but Were Not

Question 89

Multiple Choice

The errors listed below occurred in 20x3 but were not discovered until much later in 20x4. The accounting period ends December 31. The errors listed below occurred in 20x3 but were not discovered until much later in 20x4. The accounting period ends December 31. What net effect did these errors have on 20x3 pre-tax income? A) Overstated by $400 B) Overstated by $800 C) Understated by $400 D) Understated by $1,200 What net effect did these errors have on 20x3 pre-tax income?


A) Overstated by $400
B) Overstated by $800
C) Understated by $400
D) Understated by $1,200

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