Which of the Following Is an Accounting Error

question 33

Multiple Choice

Which of the following is an accounting error?

• A)Inventory was sold below carrying amount even though the inventory had been previously written down to the lower of cost and net realizable value.
• B)Convertible securities that were identified as dilutive for computing diluted EPS were not converted by the expiration date.
• C)A change in economic conditions resulted in the fair value of goodwill declining from $15 million to $10 million.
• D)Development costs of an intangible asset were capitalized when only five of six criteria for capitalization had been satisfied.

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Definitions:

Total Product

The overall quantity of output that a firm produces, usually in relation to a given amount of input.

Marginal Products

The additional output that results from using one more unit of a production input, keeping all other inputs constant.

Total Product

Total Product refers to the overall quantity of output that a firm produces, usually with respect to a given quantity of inputs over a specific period of time.

Marginal Products

The additional output produced as a result of utilizing one more unit of a particular input.