Question
14. Accrued litigation liability of $327,000 were not recorded at December 31, 2019. This error got counter-balanced when cash payment of $327,000 was made to
14. Accrued litigation liability of $327,000 were not recorded at December 31, 2019. This error got counter-balanced when cash payment of $327,000 was made to in 2020 for settlement of a lawsuit. The error was never discovered or corrected. The effect of the error would cause
Group of answer choices
December 31, 2019 retained earnings to be overstated $327,000 and December 31, 2020 retained earnings to be correct.
2019 net income to be overstated $327,000 and December 31, 2020 retained earnings to be understated $327,000.
2019 net income and December 31, 2019 retained earnings to be understated $327,000 each.
2019 net income to be understated $327,000 and 2020 net income to be overstated $327,000.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
