If a Company Understates Its Ending Inventory Balance for 2015

question 140

Short Answer

If a company understates its ending inventory balance for 2015 by $15,500, what are the effects on its net income for 2015 and 2014?

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Definitions:

Marketing Strategies

Plans and approaches used by companies to attract, retain, and enhance relationships with their target market.

Target Market

The specific group of consumers at which a product or service is aimed.

Marketing Program

A cohesive plan that integrates various promotional tools and strategies to communicate with a target audience and achieve marketing objectives.

Place Strategy

Part of the marketing mix, focusing on the distribution channels and locations where a product or service is made available to the target market.