A $15,000 Understatement of the Current Year's Ending Inventory Was

question 63

Multiple Choice

A $15,000 understatement of the current year's ending inventory was discovered after the financial statements for the year were prepared.How would that inventory error impact the current year's financial statements?

• A)Current assets were overstated and net income was understated.
• B)Current assets were overstated and net income was overstated.
• C)Current assets were understated and net income was understated.
• D)Current assets were understated and net income was overstated.

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Definitions:

Behaviorist

A psychologist who focuses on the study and analysis of observable behaviors, rather than internal mental processes.

Psychoanalyst

a professional who practices psychoanalysis, a therapeutic approach developed by Sigmund Freud, focusing on unconscious processes.

Neo-Freudian

Refers to psychologists and theorists who adopted Freud's psychoanalytic theory but altered it to include social and cultural factors in personality development and psychopathology.

Childhood Sexual Abuse

Inappropriate sexual conduct with a child by an adult or older adolescent, including a range of abusive acts.