An Error in the Ending Inventory for the Year Ended

question 21

Multiple Choice

An error in the ending inventory for the year ended December 31, 2019:

• A) has no effect on the 2019 financial statements but will create an error in the 2020 financial statements
• B) affects only the 2019 financial statements
• C) automatically creates errors in cost of goods in the 2019 and 2020 financial statements
• D) automatically creates errors in the ending inventory balance in the 2019 and 2020 financial statements

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Definitions:

Natural Chemicals

Substances produced by living organisms found in nature that are not man-made or synthesized.

Synthetic Materials

Manufactured substances made from chemical synthesis, rather than those made from natural resources.

Hormesis

A biological phenomenon where a low dose of a harmful substance has a beneficial effect, while a high dose is toxic.

Endocrine System

A network of glands that produce and release hormones to regulate various bodily functions.