Barry Corp

question 16

Multiple Choice

Barry Corp. reported 2016 net income of $40,000. However, the ending inventory in 2015 had been understated by $3,000, and 2016's ending inventory had been overstated by $6,000. Barry's correct net income for 2016 was

• A) $31,000
• B) $34,000
• C) $43,000
• D) $46,000

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.

Business Environment

The combination of all external and internal factors that influence a business's operating situation, including economic, legal, technological, and political circumstances.

Economic Recovery

The period in which an economy rebounds from a recession or downturn, generally marked by an increase in GDP, employment, and consumer spending.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, a U.S. law that raised import tariffs on thousands of goods, contributing to the severity of the Great Depression.