Ending Inventory for the Current Accounting Period Is Understated by $2,700.What

question 142

Multiple Choice

Ending inventory for the current accounting period is understated by $2,700.What effect will this error have on Cost of goods sold and Net income?

• A) \[\begin{array} { | c | c | }
• \hline \text { Cost of goods sold } & \text { Net income } \\
• \hline \text { Understated } & \text { Understated } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | c | }
• \hline \text { Cost of goods sold } & \text { Net income } \\
• \hline \text { Overstated } & \text { Overstated } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { Cost of goods sold } & \text { Net income } \\
• \hline \text { Understated } & \text { Overstated } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | c | }
• \hline \text { Cost of goods sold } & \text { Net income } \\
• \hline \text { Overstated } & \text { Understated } \\
• \hline
• \end{array}\]

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Definitions:

Parietal Lobe

A region of the cerebral cortex involved in processes related to sensory information from the body, spatial awareness, and navigation.

Receptive-field Hierarchy

A concept in neuroscience describing how sensory information is processed in a series of increasingly complex and integrative levels within the nervous system.

Lgn Cell

Refers to cells in the lateral geniculate nucleus, a part of the thalamus in the brain involved in processing visual information.

V1 Cell

Neurons located in the primary visual cortex (V1) responsible for processing visual information.