If a Company Mistakenly Counts Less Items During a Physical

question 113

Multiple Choice

If a company mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of merchandise sold?

• A) understated
• B) overstated
• C) no change
• D) only inventory will be affected

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Definitions:

Aware

Having knowledge or consciousness of something; being informed or cognizant of events or situations.

Spontaneous

Behaviors or actions that are performed without premeditation or planning, often arising naturally.

Conditions Of Worth

Standards set by others that an individual believes they must meet in order to be valued or accepted.

Self-Actualization

The realization or fulfillment of one’s talents and potentialities, often considered as the drive to fulfill one's personal capabilities.