In 2017, Ending Inventory Is Overstated

question 151

Multiple Choice

In 2017, ending inventory is overstated. What is the effect of the error on net income in 2017 and 2018?

• A)Net income is overstated in 2017 and understated in 2018.
• B)Net income is understated in 2017 and overstated in 2018.
• C)Net income is understated in 2017 and 2018.
• D)Net income is overstated in 2017 and 2018.

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Definitions:

Mixed Signal

Behavior or communication that seems contradictory or unclear, making it difficult to understand the person's intentions or feelings.

Well Organized

Characterized by a systematic and efficient arrangement or coordination of parts; neat and orderly.

Disorganized

Lacking structure or order, leading to inefficiency or chaos.

Communication Barrier

Any obstacle that impedes the exchange of ideas and information between individuals or groups, potentially leading to misunderstandings or conflict.