Assume That the 2020 Errors Are Not Discovered in 2021

question 135

Multiple Choice

Assume that the 2020 errors are not discovered in 2021. However, ending inventory at the end of year 2021 is recorded at correct amount. By how much will 2021 net income be over or understated?

• A) $6,000 overstated
• B) $4,000 understated
• C) $4,000 overstated
• D) $6,000 understated
• E) There is no effect on net income.

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Definitions:

Drinking-group Values

The norms and beliefs held by a group of individuals regarding the consumption of alcohol.

Prealcoholic Stage

The initial phase in the development of alcoholism, characterized by occasional, social, or stress-related alcohol use that may escalate to dependency.

Drinking Group's Beliefs

The shared perceptions and values that members of a group who regularly consume alcohol together hold, particularly regarding the nature and effects of their drinking behaviors.

Virility

Often associated with masculinity, virility refers to the quality or state of being strong, energetic, and having a strong sex drive.