The Accountant for Ella Company Made the Following Errors Related

question 38

Multiple Choice

The accountant for Ella Company made the following errors related to the inventory in 2016:
1) The beginning inventory for 2016 was understated by $1,350 due to an error in the physical count.
2) A $1,500 purchase of merchandise in transit was not recorded as a purchase and was not included in ending inventory.
Assuming a periodic inventory system, Ella Company's 2016 net income will be

• A) understated by $150.
• B) overstated by $1,350.
• C) overstated by $1,500.
• D) overstated by $150.

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Definitions:

Organizational Culture

The values, behaviors, practices, and social dynamics that characterize an organization and influence its members' actions and beliefs.

Unwritten Rules

Social norms or practices that are understood and followed by members of a group or organization but are not officially documented.

Training Sessions

Organized events aimed at enhancing skills, knowledge, or performance in a specific area.

Vision, Mission

Vision refers to the aspirational description of what an organization would like to achieve in the future, while Mission is a statement about its core purpose and focus.