Question
XYZ Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors: Dec. 31, 2020 Dec. 31, 2021 Ending
XYZ Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors:
Dec. 31, 2020 Dec. 31, 2021
Ending inventory $198,000 overstated $219,000 understated
Depreciation expense 126,000 overstated
No corrections have been made for any of the errors. Ignore income tax considerations.
The total effect of the errors on the balance of XYZs retained earnings at December 31, 2021 is overstated or understated by _______
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A Compilation Of University Level Assignments Marketing Audit Approach
Authors: Emeka Anyaduba
1st Edition
1475098057, 978-1475098051
