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 2012 operating income be overstated or understated?
A) $13,400 overstated
B) $27,800 understated
C) $35,800 understated
D) $40,600 understated

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 2012 operating income be overstated or understated?
A) $13,400 overstated 
B) $27,800 understated 
C) $35,800 understated 
D) $40,600 understated

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 2012 operating income be overstated or understated?
A) $13,400 overstated 
B) $27,800 understated 
C) $35,800 understated 
D) $40,600 understated

The Financial Statements of Cresent Corporation for 2011 and 2012