(A) 7,000 Overstated (X)
(B) 10,000 Overstated ()
(C) 17,000 Understated (X)
(D) 17,000 Overstated (X)
Answers: 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 10,000 Overstated.