BALANAR CORP. reports on a calendar-year basis. The financial statements contained the following errors: 2013 2014 Over (under) statement of ending inventory (100,000) 40,000 Depreciation understatement 40,000 60,000 Failure to accrue salaries at year-end 80,000 120,000 As a result of the errors, what was the effect on net income for 2014? A. 240,000 overstated C. 320,000 overstated

BALANAR CORP. reports on a calendar-year basis. The financial statements contained the following errors: 2013 2014 Over (under) statement of ending inventory (100,000) 40,000 Depreciation understatement 40,000 60,000 Failure to accrue salaries at year-end 80,000 120,000 As a result of the errors, what was the effect on net income for 2014? A. 240,000 overstated C. 320,000 overstated

Name: BALANAR CORP. reports on a calendar-year basis. The financial stateme
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Description: BALANAR CORP. reports on a calendar-year basis. The financial statements containedthe following errors:20132014Over (under) statement of ending inventory(100,000)40,000Depreciation understatement40,00060,000Failure to accrue salaries at year-end80,0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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