Exhibit 23-6 Nora Company has a fiscal year ending on December 31.Its financial statements for the years ended December 31, 2010 and 2011, contained the following errors:
$\begin{array}{lrr}
&2010&2011\
\text { Ending inventory } & \$ 9,000 \text { understated } & \$ 15,000 \text { overstated } \
\text { Bad debt expense } & 2,000 \text { overstated } & 1,000 \text { understated }
\end{array}$

- Assume no correcting entries have been made.
Refer to Exhibit 23-6.By how much was Nora's 2011 net income overstated or understated?
A)$23, 000 understated
B)$14, 000 overstated
C)$ 7, 000 understated
D)$25, 000 overstated

Question

Exhibit 23-6 Nora Company has a fiscal year ending on December 31.Its financial statements for the years ended December 31, 2010 and 2011, contained the following errors:
$\begin{array}{lrr}
&2010&2011\
\text { Ending inventory } & \$ 9,000 \text { understated } & \$ 15,000 \text { overstated } \
\text { Bad debt expense } & 2,000 \text { overstated } & 1,000 \text { understated }
\end{array}$

- Assume no correcting entries have been made.
Refer to Exhibit 23-6.By how much was Nora's 2011 net income overstated or understated?
A)$23, 000 understated
B)$14, 000 overstated
C)$ 7, 000 understated
D)$25, 000 overstated

Quizplus · Accepted Answer

The Answer of Exhibit 23-6 Nora Company has a fiscal year ending on December 31.Its financial statements for the years ended December 31, 2010 and 2011, contained the following errors:
$\begin{array}{lrr}
&2010&2011\
\text { Ending inventory } & \$ 9,000 \text { understated } & \$ 15,000 \text { overstated } \
\text { Bad debt expense } & 2,000 \text { overstated } & 1,000 \text { understated }
\end{array}$

- Assume no correcting entries have been made.
Refer to Exhibit 23-6.By how much was Nora's 2011 net income overstated or understated?
A)$23, 000 understated
B)$14, 000 overstated
C)$ 7, 000 understated
D)$25, 000 overstated

Exhibit 23-6 Nora Company Has a Fiscal Year Ending on December