Since an Error in the Period-End Inventory Causes an Offsetting

question 76

Multiple Choice

Since an error in the period-end inventory causes an offsetting error in the next period:

• A)Managers can ignore the error.
• B)It is said to be self-correcting.
• C)It affects only income statement accounts.
• D)If affects only balance sheet accounts.
• E)Is immaterial for managerial decision making.

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Definitions:

Allegations

Claims or accusations made without proof, typically against someone.

Behaviour

The actions or reactions of an entity (often a human) in response to external or internal stimuli.

Demeans

The act of causing a reduction in someone's dignity or standing, often through disrespectful or disparaging treatment.

Individual

Pertaining to a single person or entity, distinguished from a group or an aggregate.