Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example. Effect on 2020 Net Income a. Failed to record a 2020 expense. + b. Ending 2019 inventory is understated. c. Ending 2020 accrued expense is overstated. d. Ending 2020 inventory is overstated. e. Ending 2019 accrued revenue is understated. f. Ending 2020 prepaid expense is overstated. g. Ending 2019 unearned revenue is overstated. h. Ending 2020 accrued revenue was overstated. i. Ending 2019 prepaid expense was overstated. j. Ending 2019 accrued expense is overstated. k. Ending 2020 unearned revenue is understated.
Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example. Effect on 2020 Net Income a. Failed to record a 2020 expense. + b. Ending 2019 inventory is understated. c. Ending 2020 accrued expense is overstated. d. Ending 2020 inventory is overstated. e. Ending 2019 accrued revenue is understated. f. Ending 2020 prepaid expense is overstated. g. Ending 2019 unearned revenue is overstated. h. Ending 2020 accrued revenue was overstated. i. Ending 2019 prepaid expense was overstated. j. Ending 2019 accrued expense is overstated. k. Ending 2020 unearned revenue is understated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example.
| Effect on 2020 Net Income |
||
| a. | Failed to record a 2020 expense. | + |
| b. | Ending 2019 inventory is understated. | |
| c. | Ending 2020 accrued expense is overstated. | |
| d. | Ending 2020 inventory is overstated. | |
| e. | Ending 2019 accrued revenue is understated. | |
| f. | Ending 2020 prepaid expense is overstated. | |
| g. | Ending 2019 unearned revenue is overstated. | |
| h. | Ending 2020 accrued revenue was overstated. | |
| i. | Ending 2019 prepaid expense was overstated. | |
| j. | Ending 2019 accrued expense is overstated. | |
| k. | Ending 2020 unearned revenue is understated. |
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