Bennett Company's Accountant Made the Following Errors Related to Merchandise

question 114

Multiple Choice

Bennett Company's accountant made the following errors related to merchandise inventory in 2016:
1) The beginning inventory for 2016 was overstated by $1,900 due to an error in the physical count.
2) A $1,150 purchase of merchandise on credit was not recorded, but the items were included in the ending inventory.
Assuming a periodic inventory system, Bennett Company's 2016 cost of goods sold will be

• A) understated by $750.
• B) understated by $1,900.
• C) overstated by $750.
• D) overstated by $1,900.

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Definitions:

Performance in the Workplace

The degree to which an employee executes their job duties and responsibilities effectively and efficiently.

Justice

The concept of moral rightness based on ethics, rationality, law, natural law, religion, equity, and fairness, as well as the administration of the law.

Kohlberg's Stages

A theory in psychology that categorizes the development of moral reasoning into different levels and stages, from pre-conventional to conventional to post-conventional morality.

Mutual Interpersonal Expectations

The shared beliefs or standards regarding how individuals should behave towards each other in a social or professional context.