Which Statement Is Correct About Inventory Errors

question 40

Multiple Choice

Which statement is correct about inventory errors?

• A)Misstatements in inventory usually affect two reporting periods.
• B)Misstatements in inventory usually affect only the current accounting period.
• C)Misstatements in inventory usually affect only beginning inventory amounts.
• D)Misstatements in inventory usually affect only ending inventory amounts.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or values).

Making Attributions

The process of explaining one's own behavior and the behavior of others by assigning causes to these behaviors.

Dissonance Levels

A term used to describe the amount of conflict or inconsistency between an individual's beliefs, attitudes, or behaviors, leading to a state of psychological discomfort.

Initial Impressions

The first and quick opinions we form about others upon meeting them, which are often based on their appearance and behavior.