If the Amount Assigned to Ending Inventory Is Incorrect

question 154

Multiple Choice

If the amount assigned to ending inventory is incorrect,

• A) The balance sheet is affected, but the income statement is not.
• B) The income statement is affected, but the balance sheet is not.
• C) The balance sheet is affected, but cost of goods sold is not.
• D) Both the balance sheet and the income statement are affected.

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Definitions:

Endorphins

Natural painkillers produced by the brain, which also play a role in enhancing feelings of pleasure.

Hormones

Chemical messengers that are manufactured by the endocrine glands, travel through the bloodstream, and affect other tissues.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for rest and digest functions, conserving and restoring the body's energy.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by triggering the fight or flight response.