Hollander Company Hired Some Students to Help Count Inventory During

question 26

Multiple Choice

Hollander Company hired some students to help count inventory during their semester break.Unfortunately,the students added incorrectly and the 2019 ending inventory was overstated by $5,000.What would be the effect of this error in ending inventory?

• A)2019 net income would be overstated.
• B)2019 net income would be understated.
• C)2019 ending retained earnings would be understated.
• D)2019 cost of goods sold would be overstated.

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Definitions:

Sleepiness

The state or condition of feeling the need for sleep, characterized by tiredness, reduced alertness, and a lack of energy.

Bright Light

Refers to intense illumination that can influence mood, circadian rhythms, and visual processes.

Circadian Rhythm

An internal biological clock regulating the sleep-wake cycle and other physiological processes in a roughly 24-hour cycle.

Weekends

The part of the week traditionally reserved for rest and leisure activities, in many cultures spanning Saturday and Sunday.