Which Statement Is Correct About Inventory Errors

question 96

Multiple Choice

Which statement is correct about inventory errors?

• A)Misstatements in inventory can affect the beginning inventory amounts.
• B)Misstatements in inventory are likely to affect only the current accounting period.
• C)Misstatements in inventory are likely to only affect one reporting period.
• D)Misstatements self-correct over three reporting periods.

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Definitions:

Leakage Current

The unwanted flow of electrical current through an unintended path, typically small in magnitude.

Surge Current

The temporary, rapid increase in electric current that occurs when power is first applied to a circuit or when there is a short circuit, potentially damaging components.

Seven-segment LED Display

An electronic display device used to show digits and some alphabetic characters, made of seven individual light emitting diodes (LEDs) arranged in a rectangular pattern.