Use the following information for questions.
Hudson, Inc.is a calendar-year corporation.Its financial statements for the years 2011 and 2010 contained errors as follows:
-Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012.Ignoring income taxes, by how much will working capital at December 31, 2012 be overstated or understated?

Question

Use the following information for questions.
Hudson, Inc.is a calendar-year corporation.Its financial statements for the years 2011 and 2010 contained errors as follows: 
-Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012.Ignoring income taxes, by how much will working capital at December 31, 2012 be overstated or understated?

Quizplus · Accepted Answer

Since no correcting entries were made and no additional errors occurred, the working capital at December 31, 2012, remains unaffected by past errors, resulting in no overstatement or understatement.

Use the Following Information for Questions