Failure to Record Inventory in the Proper Period Can Affect

question 18

Multiple Choice

Failure to record inventory in the proper period can affect all of the following accounts except:

• A)sales.
• B)receivables.
• C)cost of Goods Sold.
• D)prepaid Expenses.

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Definitions:

Negligence

A failure to take reasonable care to avoid causing injury or loss to another person, leading to legal liability for resulting damages.

Special Damages

In a tort case, an amount awarded to compensate the plaintiff for quantifiable monetary losses, such as medical expenses, property damage, and lost wages and benefits (now and in the future).

Monetary Losses

Financial damages or losses, usually in terms of money or assets.

Medical Expenses

Costs incurred for diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body.