A Retail Organization Mistakenly Did Not Include $10,000 of Inventory

question 238

Multiple Choice

A retail organization mistakenly did not include $10,000 of inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?

• A) Cost of sales and net income are understated.
• B) Cost of sales and net income are overstated.
• C) Cost of sales is understated and net income is overstated.
• D) Cost of sales is overstated and net income is understated.

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Definitions:

Alzheimer's Disease

A progressive neurodegenerative disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to perform everyday activities.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays a role in muscle contraction and various cognitive functions.

Neurotransmitter

Chemical substances used by neurons to transmit signals across synapses to other neurons, muscles, or glands.

Memory Loss

The inability to remember information or experiences, which can be temporary or permanent, and is often a symptom of neurological conditions or damage.