If the Amount Assigned to Ending Inventory Is Incorrect, Then

question 93

Multiple Choice

If the amount assigned to ending inventory is incorrect, then:

• A) the balance sheet is affected, but the income statement is not.
• B) the income statement is affected, but the balance sheet is not.
• C) the balance sheet is affected, but cost of goods sold is not.
• D) both the balance sheet and income statement are affected.

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Definitions:

Supply Elastic

A measure of how much the quantity supplied of a good or service changes in response to a change in price.

Luxury Tax

A tax placed on expensive, non-essential products or services, aimed at curbing the consumption of luxury goods.

Middle Class

A social class made up of people who fall economically between the working class and the upper class, often defined by income, education, and occupation.

Customer Structures

The organization or arrangement of a company's customer base, typically segmented by needs, demographics, or behaviors.