2020 2019 Ending inventory $4,000 overstated $7,000 overstated Amortization expense $2,000 understated $8,000 overstated Assume that no correcting entries were made at December 31, 2019, or December 31, 2020 and that no additional errors occurred in 2020. Ignoring income taxes, by how much will working capital, at December 31, 2020 be overstated or understated? $0 $4,000 overstated $4,000 understated $3,000 understated
essari, Ltd. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows:
2020 2019
Ending inventory $4,000 overstated $7,000 overstated
Amortization expense $2,000 understated $8,000 overstated
Assume that no correcting entries were made at December 31, 2019, or December 31, 2020 and that no additional errors occurred in 2020. Ignoring income taxes, by how much will
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$0
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$4,000 overstated
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$4,000 understated
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$3,000 understated |
Use the following information to answer the questions below.
Shanti Inc. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows:
| 2020 | 2019 |
| Ending inventory | $6,000 overstated | $16,000 overstated |
| $4,000 understated | $12,000 overstated |
Assume that the proper correcting entries were made at December 31, 2019. By how much will 2020 income before taxes be overstated or understated?
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$2,000 overstated |
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$4,000 overstated |
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$10,000 overstated |
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$2,000 understated
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