A $15,000 Overstatement of the 2014 Ending Inventory Was Discovered

question 23

Multiple Choice

A $15,000 overstatement of the 2014 ending inventory was discovered after the financial statements for the year were prepared.How would that inventory error impact the 2014 financial statements?

• A)Current assets were overstated and net income was understated.
• B)Current assets were understated and net income was understated.
• C)Current assets were overstated and net income was overstated.
• D)Current assets were understated and net income was overstated.

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Definitions:

Autobiographical Memory

The aspect of memory that involves the recollection of personal experiences and events from one's own life.

Family Stories

Narratives shared within a family that recount significant events, relationships, or history of the family members.

Unconscious Memories

Memories that are not within one's conscious awareness, often influencing behaviors and decisions without one's realization.

Actual Recall

Actual recall refers to the process of accurately retrieving and reproducing information from memory without the aid of cues, often contrasted with recognition or prompted recall.