iunplechoice questions. Cirele the best answer. (2.5 points each, total 45 point

Question

iunplechoice questions. Cirele the best answer. (2.5 points each, total 45 points Miller Company's December 31 year-end financial statements contained the following errors Ending inventory 22.500 verstated 333 ,000 aver tated Dec.31 2014 $33,000 overstated No corrections have been made for any of the errors. Ignore income tax considerations. What is the total net effect of the errors on Miller's 2015 net income? a. Net income understated by $10,500. b. Net income overstated by $33,000. c. Net income overstated by $10,500. Net income overstated by $55,500. d.

Explanation / Answer

Dec 31,2014 ending inventoy is overstated means 2015 beginning inventoy is overstated .

2015 Ending nventoy is overstated means cost of goods sold 2015 is understated. cost of goods sold of 2015 is understated means net income of 2015 overstated

so ovestated net income is (33000-22500) = 10500

so answer is c) net income overstated by $10500

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.