12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 2010 Ending Inventory$3,000 overstated$8,000 overstated $2,000 understated$6,000 overstated 2011 Depreciation Expense 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? a. $0 b. $2,000 overstated c. $2,000 understated d. $5,000 understated
12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 2010 Ending Inventory$3,000 overstated$8,000 overstated $2,000 understated$6,000 overstated 2011 Depreciation Expense 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? a. $0 b. $2,000 overstated c. $2,000 understated d. $5,000 understated
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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![12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and
2010 contained errors as follows:
2010
Ending Inventory$3,000 overstated$8,000 overstated
$2,000 understated$6,000 overstated
2011
Depreciation Expense
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?
a. $0
b. $2,000 overstated
c. $2,000 understated
d. $5,000 understated](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b21c1fc-cf31-4889-bd23-2a95026e7424%2F7761eb72-a8ec-40bf-8d09-1d3d148405a5%2F07k6su2.jpeg&w=3840&q=75)
Transcribed Image Text:12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and
2010 contained errors as follows:
2010
Ending Inventory$3,000 overstated$8,000 overstated
$2,000 understated$6,000 overstated
2011
Depreciation Expense
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?
a. $0
b. $2,000 overstated
c. $2,000 understated
d. $5,000 understated
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