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Bisbee Ltd

question 52

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Bisbee Ltd. has been fraudulently overstating its inventory in order to "pump up" a lagging income. It started this practice in 2016 and overstated the 2016 income by $9,000. By what amount will they have to overstate December 31, 2017 inventory in order to overstate 2017 income by $14,000?


Definitions:

Psychasthenia

A psychological disorder characterized by excessive anxiety, obsession, and feelings of inferiority and inadequacy.

Employment

The condition of having paid work.

Minnesota Multiphasic Personality Inventory (MMPI)

A widely used psychological assessment test that evaluates and identifies personal, social, and behavioral problems in psychiatric patients.

Truly Psychotic

A term describing individuals who experience severe mental disorders that cause a break with reality, such as schizophrenia.

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