If Ending Inventory Is Understated in 2017, and No Further

question 71

Multiple Choice

If ending inventory is understated in 2017, and no further errors are made in 2018, the 2018 ending owner's equity will be

• A) understated.
• B) overstated.
• C) correct.
• D) Owner's equity is never affected by an inventory error.

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Definitions:

Anticipating

The act of expecting or predicting future events or needs based on current trends or data.

Background Information

Preliminary data or knowledge that provides context for a new study, discussion, or analysis.

Communication Noise

Any external or internal interference that disrupts the clarity, transmission, or reception of a message.

Interrupts

Unscheduled or unexpected disturbances that break the continuity of an activity or communication flow.