The financial statements of Cresent Corporation for 2011 and 2012 contained the following errors:

Assuming that none of the errors were detected or corrected, by what amount will 2011 operating income be overstated or understated?
A) $9,200 overstated
B) $9,200 understated
C) $18,800 understated
D) $18,800 overstated

Question

The financial statements of Cresent Corporation for 2011 and 2012 contained the following errors:

Assuming that none of the errors were detected or corrected, by what amount will 2011 operating income be overstated or understated?
A) $9,200 overstated 
B) $9,200 understated 
C) $18,800 understated 
D) $18,800 overstated

Quizplus · Accepted Answer

The Answer of The financial statements of Cresent Corporation for 2011 and 2012 contained the following errors:

Assuming that none of the errors were detected or corrected, by what amount will 2011 operating income be overstated or understated?
A) $9,200 overstated 
B) $9,200 understated 
C) $18,800 understated 
D) $18,800 overstated

The Financial Statements of Cresent Corporation for 2011 and 2012