Question: Indicate the effectUnderstated (U), Overstated (O), or No Effect (NE)that each of the following errors has on 2011 net income and 2012 net income: 2011

Indicate the effect€”Understated (U), Overstated (O), or No Effect (NE)€”that each of the following errors has on 2011 net income and 2012 net income:

2011 2012 Wages payable were not recorded at Dec. 31, 2011 Equipment purchased in 2010 was expensed. Equipment purchased in 2011 was expensed. Ending inventory at Dec. 31, 2011, was overstated. Patent amortization was not recorded in 2012

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