Hollander Company Hired Some Students to Help Count Inventory During

question 48

Multiple Choice

Hollander Company hired some students to help count inventory during their semester break.Unfortunately,the students added incorrectly and the 2010 ending inventory was overstated by $5,000.What would be the effect of this error in ending inventory?

• A)2010 net income would be overstated.
• B)2010 net income would be understated.
• C)2010 ending retained earnings would be understated.
• D)2010 cost of goods sold would be overstated.

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Definitions:

Interview

A conversation where questions are asked by the interviewer to elicit facts or statements from the interviewee.

Gratefulness

The feeling or expression of being thankful and appreciative.

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