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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.
Accountingmedium
A7,000 Overstated
10,000 Overstated
C17,000 Understated
D17,000 Overstated Net income will be overstated by 10,000 because the accrued expense are understated. Under/ Overstatement of depreciation of the year 2011-2012 does not affect the net income of current year i.e., 2012-13.]
Correct Answer: B. 10,000 Overstated
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