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:

Egocentrism

A cognitive trait where an individual fails to understand that other people might have different points of view from their own.

Script for Crying

A socially constructed guide or expectation regarding when, where, and how it is appropriate to express tears or sorrow.

Conservation

The principle in cognitive development where a child learns that quantity doesn’t change despite the arrangement or appearance altering.

Social Mediation

Human interaction that expands and advances understanding, often through words that one person uses to explain something to another.