The Ending Inventory for Wattis Company Was Overstated by $6,000

question 15

Multiple Choice

The ending inventory for Wattis Company was overstated by $6,000 in 2011. The overstatement will cause Wattis Company's

• A) retained earnings to be understated on the 2011 balance sheet.
• B) cost of goods sold to be understated on the 2012 income statement.
• C) cost of goods sold to be overstated on the 2011 income statement.
• D) 2012 balance sheet not to be misstated.

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Definitions:

Chemical Messages

Signals transmitted through the release and reception of chemicals, such as neurotransmitters and hormones, which affect the behavior and physiology of organisms.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Dendrite

The branched extensions of a neuron that receive signals from other neurons and transmit them toward the cell body.

Axon

An extended, thin part of a neuron responsible for carrying electrical impulses outward from the neuron's main cell body.