A Company Using a Periodic Inventory System Neglected to Record

question 19

Multiple Choice

A company using a periodic inventory system neglected to record a purchase of merchandise on credit at year end.This merchandise was omitted from the year end physical count.How will these errors affect assets,liabilities,owners' equity at year end and net earnings for the year? $$\begin{array} { | l | l | l | l | l | } \hline & & & \text { Owners' } & \text { Net } \\\hline & \text { Assets } & \text { Liabilities } & \text { Equity } & \text { Earnings } \\\hline 1 & \text { No effect } & \text { overstate } & \text { understate } & \text { understate } \\\hline 2 & \text { No effect } & \text { understate } & \text { overstate } & \text { overstate } \\\hline 3 & \text { Understate } & \text { no effect } & \text { understate } & \text { understate } \\\hline 4 & \text { Understate } & \text { understate } & \text { no effect } & \text { no effect } \\\hline\end{array}$$

• A)Choice 1
• B)Choice 2
• C)Choice 3
• D)Choice 4

Recognize the prevalence of alcohol use among men and women over the age of 60.

Identify the characteristics of late-onset alcoholism and its impact on older individuals.

Define and distinguish between various alcohol use patterns, including abstainers, social drinkers, and hazardous use.

Comprehend the challenges in screening and diagnosing substance use disorders (SUDs) in older adults.

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Definitions:

Regression Equation

An equation that represents the relationship between dependent and independent variables, used to predict outcomes.

Holding Constant

A method in statistical analysis where certain variables are kept fixed to isolate the effect of one or more variables under investigation.

Unit Increase

Refers to an increment or rise by one unit in the value of a specific variable or quantity.

Regression Equation

A mathematical formula that describes the relationship between dependent and independent variables, often used for prediction.