Saturn Company reported that the financial statements contained the following errors: 2012 2013 Ending inventory 60,000 understated 90,000 overstated Depreciation expense 120,000 overstated 75,000 overstated None of the errors were detected or corrected, and that no additional errors were made in 2014. By what amount would current assets on December 31, 2014 be overstated or understated? a.90,000 understated b.90,000 overstated c.30,000 overstated d.0
Saturn Company reported that the financial statements contained the following errors: 2012 2013 Ending inventory 60,000 understated 90,000 overstated Depreciation expense 120,000 overstated 75,000 overstated None of the errors were detected or corrected, and that no additional errors were made in 2014. By what amount would current assets on December 31, 2014 be overstated or understated? a.90,000 understated b.90,000 overstated c.30,000 overstated d.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Saturn Company reported that the financial statements contained the following errors:
2012 2013
Ending inventory 60,000 understated 90,000 overstated
None of the errors were detected or corrected, and that no additional errors were made in 2014.
By what amount would current assets on December 31, 2014 be overstated or understated?
a.90,000 understated
b.90,000 overstated
c.30,000 overstated
d.0
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