An Error in the Physical Count of Goods on Hand $\begin{array}{ll}\text { Cost of Goods Sold }&\text { Net Income }\\\end{array}$

question 120

Multiple Choice

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.The effect of this error in the current period is
$\begin{array}{ll}\text { Cost of Goods Sold }&\text { Net Income }\\\end{array}$

• A)\(\begin{array}{ll}\text { Understated } & \text { \quad \quad Understated } \\\end{array}\)
• B)\(\begin{array}{ll}\text { Overstated } & \text {\quad\quad\quad Overstated } \\\end{array}\)
• C)\(\begin{array}{ll}\text { Understated } & \text {\quad\quad\quad Overstated } \\\end{array}\)
• D)\(\begin{array}{ll}\text { Overstated } & \text {\quad\quad\quad Understated }
• \end{array}\)

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Sweets

Food items that are rich in sugar and often used as a treat or dessert.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable.