At an Organization That Uses a Periodic Inventory System, the Accountant

question 188

Multiple Choice

At an organization that uses a periodic inventory system, the accountant accidentally understated the organization's beginning inventory. How would the accountant's accident impact the income statement?

• A) Cost of goods sold will be understated and net income will be overstated.
• B) Cost of goods sold will be overstated and net income will be understated.
• C) Cost of goods sold will be understated and there will be no impact on net income.
• D) There will be no impact on cost of goods sold and net income will be overstated.

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Definitions:

Intrarole Conflict

A situation where conflicting expectations arise related to a single role that a person is performing.

Minimize Interaction

The action or strategy of decreasing the amount or frequency of communication or contact between individuals or entities.

Intrarole Conflict

A psychological conflict that occurs when an individual perceives incompatible demands within the same role.

Person-Role Conflict

Arises when an individual's personal values or beliefs are in conflict with the expectations or demands of their professional role.