On scrutiny of a firm's books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified. i. Depreciation for 2011-2012- ` 7,000 understated ii. Accrued expenses as at March 31, 2013 - ` 10,000 understated The impact of this on the reported net income for the year ending March 31, 2013 is
A)7,000 Overstated
B)10,000 Overstated
C)17,000 Understated
D)17,000 Overstated

Question

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The Answer of On scrutiny of a firm's books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified. i. Depreciation for 2011-2012- ` 7,000 understated ii. Accrued expenses as at March 31, 2013 - ` 10,000 understated The impact of this on the reported net income for the year ending March 31, 2013 is
A)7,000 Overstated
B)10,000 Overstated
C)17,000 Understated
D)17,000 Overstated

On Scrutiny of a Firm's Books of Accounts, It Was