At the End of Year 1, ABC Inc

question 95

Multiple Choice

At the end of Year 1, ABC Inc.'s inventories were overstated by $10,000.At the end of Year 2 its inventories were overstated by $20,000.Assuming that ABC Inc.is subject to a 20% tax rate, the effect of these overstatements on the company's Year 2 ending Inventories would be an:

• A)Understatement of $16,000.
• B)Overstatement of $16,000.
• C)Overstatement of $30,000.
• D)Overstatement of $20,000.

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Definitions:

Multiple-Forms Reliability

A type of reliability test where different forms of a test are administered to the same group of people, measuring the consistency of the results across the different forms.

Test-Retest Reliability

A measure of the consistency of a psychological test or assessment tool across multiple administrations.

Internal Consistency Reliability

A type of reliability that examines whether items on a test measure only one dimension, construct, or area of interest.

Interrater Reliability

The level of agreement among multiple observers or raters of the same phenomenon or measurement.