If a Company Mistakenly Counts More Items During a Physical

question 205

Multiple Choice

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

• A) There will be 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:

Protein Synthesis

The biological process through which cells build proteins based on the genetic instructions encoded in DNA.

Liposomes

Small artificial vesicles made of lipid bilayers, used in drug delivery systems and various biotechnological applications.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, and other related compounds, serving as energy storage and structural components of cell membranes.

Protobionts

Early protocell structures that are believed to have preceded true living cells, consisting of a membrane-like structure enclosing biopolymers and other organic molecules.