Recent audits revealed that BanqueCard, a credit service, has erred in calculating the interest it charges its clients. But BanqueCard’s chief accountant reasoned that the profits that the company shows would remain unaffected by a revision of its clients’ credit statements to correct its previous billing errors, since just as many clients had been overcharged as undercharged.
Which of the following is a reasoning error that the accountant makes in concluding that correcting its clients’ statements would leave BanqueCard’s profits unaffected?

Question

Examsnet · Accepted Answer

Correct Answer is :  Overlooking the possibility that the amount by which BanqueCard’s clients had been overcharged might be greater than the amount by which they had been undercharged

GMAT Verbal Reasoning Practice Test 5