Tarleton Company Discovered Ending Inventory Errors in 2017 and 2018

question 6

Multiple Choice

Tarleton Company discovered ending inventory errors in 2017 and 2018. The 2017 ending inventory was overstated by $215,000 whereas the 2018 ending inventory was understated by $85,000. Ignoring income tax effects, by what amount should the beginning retained earnings be adjusted on January 1, 2019?

• A) $85,000 debit
• B) $85,000 credit
• C) $130,000 debit
• D) $215,000 credit

Explain the concept of asymmetric information and its implications for pollution abatement.

Understand the role and functioning of Pigouvian taxes.

Recognize the use of internet platforms and federal deposit insurance for mitigating information asymmetry and moral hazard.

Explain cap-and-trade systems and their effectiveness in pollution control.

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Definitions:

SDLC

The Software Development Life Cycle is a methodology used for the planning, creation, testing, and deployment of information systems.

Systems

Integrated assemblies of components or processes that work together to perform a specific function or set of functions.

Base Operating System

The fundamental software that provides the core functions and services upon which additional applications and processes can run on a computer.

Server

Computers that support networks, enabling users to share files, software, and other network devices.