In 2017, Ending Inventory Is Overstated

question 15

Multiple Choice

In 2017, ending inventory is overstated. What is the effect of the error on total stockholders' equity in 2017 and 2018?

• A)Total stockholders' equity is overstated in 2017 and 2018.
• B)Total stockholders' equity is understated in 2017 and 2018.
• C)Total stockholders' equity is overstated in 2017 and correctly stated at the end of 2018.
• D)Total stockholders' equity is overstated in 2017 and understated in 2018.

---

Definitions:

Impulses

Sudden, involuntary urges to act or think in a particular way, often without conscious reasoning.

Fight Or Flight

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating its actions and sensory information.

Autonomic Nervous

This refers to the autonomic nervous system, which regulates involuntary bodily functions such as heart rate, digestion, and respiratory rate.