Saturn Company reported that the financial statements contained the following errors:                                                                2012                               2013 Ending inventory                         60,000 understated            90,000 overstated Depreciation expense              120,000 overstated                75,000 overstated None of the errors were detected or corrected, and that no additional errors were made in 2014. By what amount would current assets on December 31, 2014 be overstated or understated? a.90,000 understated b.90,000 overstated c.30,000 overstated d.0

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 15EB: Tanke Company reported net income on the year-end financial statements of $850,200. However, errors...
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Saturn Company reported that the financial statements contained the following errors:
                                                               2012                               2013
Ending inventory                         60,000 understated            90,000 overstated
Depreciation expense              120,000 overstated                75,000 overstated
None of the errors were detected or corrected, and that no additional errors were made in 2014.
By what amount would current assets on December 31, 2014 be overstated or understated?
a.90,000 understated
b.90,000 overstated
c.30,000 overstated
d.0
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