Which of the Following Would NOT Cause an Error in the Physical

question 120

Multiple Choice

Which of the following would NOT cause an error in the physical inventory count on December 31?

• A) Counting inventory purchased that was shipped FOB destination on December 31
• B) Double counting an aisle of product
• C) Counting inventory purchased that was shipped FOB shipping point on December 31
• D) Forgetting to tag a section of inventory
• E) Forgetting to count an inventory item

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Definitions:

Disposable Income

The amount of income left for an individual or household after paying all taxes, available for spending, saving, or investing.

Autonomous Consumption

The level of consumption that occurs when income is zero, showing the basic level of consumption necessary for survival.

Permanent Income Hypothesis

A theory suggesting that people's consumption decisions are based on their long-term income expectations rather than their current disposable income.

Negative Savings

A situation where spending exceeds income, resulting in a deficit rather than savings.