A Company Using the Periodic Inventory System Correctly Recorded a Purchase

question 16

Multiple Choice

A company using the periodic inventory system correctly recorded a purchase of merchandise,but the merchandise was not included in the physical inventory count at the end of the accounting period.The error caused which of the following?

• A)An understatement of both net income and inventory.
• B)An overstatement of inventory,purchases,and accounts payable.
• C)An understatement of inventory,purchases,and accounts payable.
• D)An overstatement of net income and inventory.

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Definitions:

Confidence Interval

A range of values derived from sample data that is likely to contain the value of an unknown population parameter, expressed at a given level of confidence.

Sample Sizes

The number of individuals or observations included in a sample, which represents a portion of the larger population for the purpose of conducting statistical analysis.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter.

Level of Confidence

A statistical measure expressed as a percentage that indicates the reliability of an estimate or range of values.