Phipps Corporation Overstated Its Ending Inventory on December 31,2015

question 72

Multiple Choice

Phipps Corporation overstated its ending inventory on December 31,2015.Which of the following answers correctly identifies the effect of the error on 2016 financial statements?

• A)Cost of goods sold is overstated.
• B)Gross margin overstated.
• C)Ending inventory is understated.
• D)Net income is overstated.

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Definitions:

Child's Temperament

Refers to the innate traits that determine a child's approach to the world, including their activity level, reactivity, and the way they regulate emotions.

Adaptability

The ability to adjust to new conditions, challenges, or environments effectively.

Stranger Anxiety

The fear and caution exhibited by infants and young children when encountering unfamiliar individuals.

Infant's Capacity

The potential or ability of an infant to develop skills and accomplish tasks, often measured through milestones in physical, cognitive, and emotional development.