If a Company Mistakenly Counts More Items During a Physical

question 146

Multiple Choice

If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line?

• A) no change to net income
• B) net income will be overstated
• C) net income will be understated
• D) only gross profit will be affected

---

Definitions:

Prefiguration of Christ

The interpretation of events, persons, or symbols in the Old Testament as foreshadowing or anticipating Christ's life and work.

King David

A significant figure in Jewish, Christian, and Islamic traditions, celebrated as the second king of Israel and a forefather of Jesus, renowned for his religious devotion and poetry, notably the Psalms.

Moses

A key figure in the Abrahamic religions, regarded as a prophet, lawgiver, and leader who liberated the Israelites from Egyptian slavery.

Jonah

A figure in the Hebrew Bible and the Quran, known for being swallowed by a giant fish or whale, and his story is often interpreted as a symbol of resurrection and forgiveness.