Use the following information for questions.
Ignore taxes.
Peach Inc.'s financial statements for the years 2017 and 2018 contained errors as follows:
-Assuming that none of the errors were detected or corrected, and that no additional errors were made in 2019, by what amount will current assets at December 31, 2018 be overstated or understated?
A)$2,000 overstated
B)$10,000 understated
C)$10,000 overstated
D)$0

Question

Use the following information for questions.
Ignore taxes.
Peach Inc.'s financial statements for the years 2017 and 2018 contained errors as follows: 
-Assuming that none of the errors were detected or corrected, and that no additional errors were made in 2019, by what amount will current assets at December 31, 2018 be overstated or understated?
A)$2,000 overstated 
B)$10,000 understated 
C)$10,000 overstated 
D)$0

Quizplus · Accepted Answer

The error in recording the equipment purchase in 2018 has no impact on current assets.

Use the Following Information for Questions