At the End of 2019,a $5,000 Understatement Was Discovered in the 2019

question 100

Multiple Choice

At the end of 2019,a $5,000 understatement was discovered in the 2019 ending inventory as reflected in the inventory records.What were the 2019 effects of the $5,000 inventory error (before correction) ?

• A)Assets were understated by $5,000 and pretax income was understated by $5,000.
• B)Assets were understated by $5,000 and pretax income was overstated by $5,000.
• C)Cost of goods sold was understated by $5,000 and pretax income was understated by $5,000.
• D)Cost of goods sold was overstated by $5,000 and pretax income was overstated by $5,000.

Evaluate the condition of a firm based on its profit/loss status.

Identify the characteristics of a firm's operational phase (short run or long run).

Calculate a firm's most efficient output.

Determine the minimum acceptable price for a firm in the long run to cover its costs.

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Definitions:

Overwhelmed

A state of being where an individual feels unable to manage or cope with their current emotional or physical burdens.

Red Flag Words

Terms or phrases that signal potential problems or areas of concern, often used in communication to alert to issues.

Flood of Emotions

An overwhelming feeling where multiple emotions are experienced intensely and simultaneously.

Albert Mehrabian

A psychologist known for his work on non-verbal communication and the 7-38-55 rule, emphasizing the importance of non-verbal cues over verbal in personal communication.