8. The merchandise inventory at the end of the year was inadvertently overstated by $5,000. Did the error cause an overstatement or an understatement of the net income for the year? 9. The $5,000 inventory error in question 8 was not discovered and the inventory at the end of the following year was correctly stated. (a) Will the earlier error cause a $5,000 overstatement or understatement of the net income for the following year? (b) Which items on the balance sheet at the end of the following year will be overstated ro undersated by $5,000 as a result of the error in the earlier year? 10. If total assets decreased by $5,000 during a period of time and capital increased by $15,000 during the same period, the amount and direction (increase or decrease) of the period's change in total liabilities is: a. $10,000 increase b. $10,000 decrease c. $20,000 increase d. $20,000 decrease 11. The total assets and total liabilities of a particular business enterprise at the beginning and at the end of the year appear below. During the year, the owner had withdraw $18,000 for personal use and had made an additional investment in the enterprise of $5,000. Beggining of the year End of the year The amount of net income or net loss for the year was: Assets Liabilities $166,000 $72,000 $177,000 $99,000 a. net income of $11,000 b. net income of $13,000 c. net loss of $27,000 d. net loss of $3,000 12. Which one of the following accounts would NOT appear on a balance sheet? a. Prepaid expenses b. Accumulated depreciation c. Unearned Income d. Depreciation expense