Cesar Company Understated Its Inventory by $20,000 at December 31

question 131

Multiple Choice

Cesar Company understated its inventory by $20,000 at December 31, 2022. It did not correct the error in 2022 or 2023. As a result, Cesar's owner's equity was:

• A) understated at December 31, 2022, and overstated at December 31, 2023.
• B) understated at December 31, 2022, and properly stated at December 31, 2023.
• C) overstated at December 31, 2022, and overstated at December 31, 2023.
• D) understated at December 31, 2022, and understated at December 31, 2023.

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Definitions:

Biological Approach

A perspective in psychology that emphasizes understanding behavior through focusing on brain structures, neurochemicals, and the influence of genetics.

Environmental Processes

The physical, chemical, and biological actions or events that influence the environment, often affecting ecosystems and human societies.

Psychological Processes

Mental activities including thinking, perceiving, feeling, and remembering, that underlie human behavior.

Biological Functioning

The processes and activities carried out by living organisms, including humans, which maintain life and contribute to growth, reproduction, and survival.