Assume That in Year 1,the Ending Merchandise Inventory Is Overstated

question 14

Essay

Assume that in Year 1,the ending merchandise inventory is overstated by $30,000.If this is the only error in Years 1 and 2,fill in the items below,indicating which items will be understated(U),overstated(O),or correctly(C)stated for Year 2.
$\begin{array}{ll}\text { Ending merchandise inventory } & \text { Year 2 \_\_\_ } \\\text { Beginning merchand ise inventory } & \text { Year 2\_\_\_ } \\\text { Cost of goods sold } & \text { Year 2 \_\_\_ } \\\text { Gross profit } & \text { Year 2 \_\_\_ } \\\text { Net income } & \text { Year 2 \_\_\_ } \\\text { Ending owner's capital } & \text { Year 2 \_\_\_ }\end{array}$

Understand the concept of Machiavellianism and its implications on personality and behavior.

Identify characteristics and behaviors associated with authoritarian personalities.

Recognize the traits and behaviors of Type A and Type B personalities.

Describe the concept of self-monitoring and how it affects individuals' reactions to different situations.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Days Sales In Inventory

A financial metric indicating the average time it takes for a company to turn its inventory into sales, reflecting inventory management efficiency.

Days To Pay Payables

An accounting metric that calculates the average number of days it takes a company to pay its invoices from suppliers, indicating how effectively a company is managing its outgoing cash flow.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.