For Each Independent Situation Given Below,determine the Effect on Pretax $\begin{array} { c c c } & \text { Independent Situations } && \text { Effect on Pretax Income } \\ \end{array}$

question 32

Short Answer

For each independent situation given below,determine the effect on pretax income for each.Enter "+" to indicate pretax income is overstated,"-" to indicate pretax income is understated,or "NA" to indicate that pretax income is not affected. $\begin{array} { c c c } & \text { Independent Situations } && \text { Effect on Pretax Income } \\ \end{array}$
$\begin{array} { c c c } &&&&&&&&&&&&&& \text { 2009 } && \text { 2010 } \\ \end{array}$
A. 2009 ending inventory is overstated.
B. 2009 ending inventory is understated.
C. 2010 ending inventory is overstated.
D. 2010 beginning inventory is overstated
E. 2009 beginning inventory is understated.
F. 2010 beginning inventory is understated and 2010 ending inventory is understated by the same amount.

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Definitions:

Large Quantity

Refers to a significantly high volume of goods or products, often associated with bulk buying or production.

Monopoly

A monopoly exists when a single company or entity has exclusive control over a particular market or product, allowing it to set prices without competition.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, often based on their willingness to pay.

Monopolist's Profits

The earnings a monopoly makes, calculated as total revenues minus its total costs, benefiting from the absence of competition in its market or industry.