An Error

question 63

Multiple Choice

An error

• A)in the ending inventory of the current period will have no effect on net income of the next accounting period.
• B)that understates the ending inventory will cause net income for the period to be overstated.
• C)that understates the ending inventory will cause assets to be understated.
• D)that understates the ending inventory will cause the cost of goods sold for the period to be understated.

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Definitions:

Global Reporting Initiative

An international organization that helps businesses and governments understand and communicate their impact on issues such as climate change, human rights, and corruption.

Sustainability Reporting

The practice of disclosing an organization's environmental, social, and governance (ESG) performance to stakeholders.

Performance Incentive Structure

A compensation system that rewards employees based on their achievement of specific performance targets.

Universal Standards

Principles or criteria that are globally accepted and applied across various industries, fields, or disciplines to ensure consistency, quality, and effectiveness.