Assume That Ending Inventory in Fiscal 2016 Is Overstated by $1,000.What

question 142

Multiple Choice

Assume that ending inventory in fiscal 2016 is overstated by $1,000.What impact will this have on fiscal 2017 financial reporting?

• A)Retained earnings is overstated by $1,000.
• B)Retained earnings is understated by $1,000.
• C)The retained earnings will be correctly stated.
• D)Inventory is understated on the balance sheet.

---

Definitions:

Formal Style

A type of writing or speech characterized by a structured, impersonal, and professional tone, often used in official communications and academic works.

Informal Language

A casual form of communication that uses everyday expressions and is typically used in personal conversations.

Goodwill

is the positive reputation and mutual respect that can benefit both parties in communication, often resulting from kind gestures or effective relationship management.

Conversational Style

A manner of speaking or writing that resembles natural, spontaneous conversation, often characterized by a casual and friendly tone.