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On December 31, 2016, the Maggie Company recognized $15,000 in revenue from rent of $5,000 due in 2017 and $10,000 due in 2018, all collected
On December 31, 2016, the Maggie Company recognized $15,000 in revenue from rent of $5,000 due in 2017 and $10,000 due in 2018, all collected in advance from another company. Ignoring Income taxes, if this not detected
a. Retained Earnings at December 31, 2017, will be understated by $15,000
b. Retained Earnings will be overstated by $15,000 until the error is discovered
c. Retained Earnings at December 31, 2017, will be understated by $10,000
d. Retained Earnings at December 31, 2017, will be overstated by $10,000 
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The Routledge Companion To Auditing
Authors: David Hay, W. Robert Knechel, Marleen Willekens
1st Edition
1138363081, 978-1138363083
