At the End of 2010,a $5,000 Understatement Was Discovered in the Amount

question 39

Multiple Choice

At the end of 2010,a $5,000 understatement was discovered in the amount of the 2010 ending inventory as reflected in the perpetual inventory records.What were the 2010 effects of the $5,000 inventory error (before correction) ?

• A)Assets were understated by $5,000 and pretax income was understated by $5,000.
• B)Assets were understated by $5,000 and pretax income was overstated by $5,000.
• C)Cost of goods sold was understated by $5,000 and pretax income was understated by $5,000.
• D)Cost of goods sold was overstated by $5,000 and pretax income was overstated by $5,000.

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Definitions:

Norming Stage

A stage in team development where members resolve conflicts, establish norms, and foster unity.

Cohesiveness

The degree to which members of a group or team are attracted to each other and motivated to stay in the group.

Team Leaders

Individuals who guide, direct, and lead teams towards achieving their goals and objectives, often responsible for fostering teamwork and resolving conflicts.

Coaches

Professionals who support, instruct, and guide individuals or teams to achieve specific personal or professional goals.