If, at the End of a Period, a Company Erroneously

question 70

Multiple Choice

If, at the end of a period, a company erroneously excluded some goods from its ending inventory and also erroneously did not record the purchase of these goods in its accounting records, these errors would cause

• A) the ending inventory and retained earnings to be understated.
• B) the ending inventory, cost of goods sold, and retained earnings to be understated.
• C) no effect on net income, working capital, and retained earnings.
• D) cost of goods sold and net income to be understated.

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Definitions:

Sound Waves

Mechanical vibrations that travel through a medium such as air, water, or solid materials, and can be heard when they reach a human or animal ear.

Pulses

Rapid, transient changes in the amplitude of an electrical signal, often used to convey information or trigger specific actions in electronic devices.

Pressure Switch

A device that activates or deactivates electrical contact in response to changes in pressure level.