Multiple Choice
Use the following information for question 102-103.
During its December 31, 2014 year-end inventory count, Jefferson Company failed to count items in transit to which it had legal title. As a result of this error, ending inventory was understated by $30,000.
-Assuming the company makes no errors in 2015, Jefferson's owner's equity at the end of December 2015 will be
A) overstated by $30,000.
B) understated by $30,000.
C) overstated by $60,000.
D) correct.
Correct Answer:
Verified
Correct Answer:
Verified
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