Question
25. The following information relates to the Smith Company for 2006: Cash dividend declared $ 400 Retained earnings, January 1, 2006 ? Net income 480
25. The following information relates to the Smith Company for 2006:
| Cash dividend declared | $ 400 |
| Retained earnings, January 1, 2006 | ? |
| Net income | 480 |
| Error in 2005 - understatement of ending inventory; error found in 2006 |
150 |
| Retained earnings, December 31, 2006 | 1,400 |
What was the unadjusted January 1, 2006, balance in retained earnings?
| a. | $1,230 |
| b. | $1,570 |
| c. | $1,470 |
| d. | $1,170 CORRECT |
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The Role Of Project Auditing In The Improvement Of Systems
Authors: Aïssata Maiga, Oumar Bah
1st Edition
6205076616, 978-6205076613
