C Good Eyeglasses Overstated Its Inventory by $30,000 at the End

question 22

Multiple Choice

C. Good Eyeglasses overstated its inventory by $30,000 at the end of 2018. In 2019, the discovery of this error, before adjusting or closing entries, would require:

• A) An increase in retained earnings.
• B) A debit to inventory of $30,000.
• C) A prospective adjustment in the 2019 income statement.
• D) None of these answer choices are correct.

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Definitions:

Social Learning Theory

A theory that proposes individuals learn new behaviors and information by observing others, emphasizing the importance of cognitive processes in learning.

Correct Behavior

Actions or responses that are deemed appropriate within a given context, often aligning with societal, ethical, or professional standards.

Punishment

The imposition of a penalty or adverse consequence on an individual or group in response to undesired behavior.

Ethics Competency

The ability to understand, evaluate, and act upon moral issues and challenges in a professional context, according to principles of right and wrong.