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.

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Definitions:

Cultural Factors

Elements influenced by culture that affect behaviors, values, and beliefs of individuals or groups.

Nature vs. Nurture

A debate concerning the relative importance of an individual's innate qualities (nature) versus personal experiences (nurture) in determining or causing differences in physical and behavioral traits.

Thermoregulation

The process by which an organism maintains its internal temperature within a tolerable range.

Cultural Influence

The impact of societal beliefs, values, and practices on an individual's behavior, thoughts, and feelings.