If Beginning Inventory Is Understated by $1,300 and Ending Inventory

question 25

Multiple Choice

If beginning inventory is understated by $1,300 and ending inventory is understated by $700, pretax profit for the period will be which of the following?

• A) Overstated by $600.
• B) Overstated by $2,000.
• C) Understated by $2,000.
• D) Understated by $600.

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Definitions:

Performance Aids

Tools or resources provided to support the application of skills or knowledge in practical settings.

Memorization

The process of committing something to memory or the act of storing information or facts for recalling later.

Off-the-job Training

Training conducted outside the normal work premises, often in a classroom setting, where employees are taught theoretical or practical skills.

Structured On-the-job Training

A method of training where employees are taught and practice skills in their actual work setting under the guidance and supervision of an experienced worker or trainer.