If, at the End of a Period, Matthew Company Erroneously

question 4

Multiple Choice

If, at the end of a period, Matthew Company erroneously excluded some goods from its ending inventory and also erroneously did not record the purchase of these goods in its accounting records, these errors would cause

• A) no effect on the company's net income, working capital, and retained earnings.
• B) the company's cost of goods available for sale, cost of goods sold, and net income to be understated.
• C) the company's ending inventory, cost of goods available for sale, and retained earnings to be understated.
• D) the company's ending inventory, cost of goods sold, and retained earnings to be understated.

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Definitions:

Proposition Form

A statement that expresses a judgement or opinion that can be considered true or false.

Disjunctive Argument

An argument based on a disjunction, where at least one of the premises must be true for the conclusion to be true.

Disjuncts

Individual choices or alternatives within a disjunctive proposition, where the truth of any one disjunct implies the falsity of the others when presented in an "either/or" format.

Syllogisms

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common or middle term not present in the conclusion.