If Ending Inventory Is Understated by $8,000 in 20X3,and Assuming

question 17

Multiple Choice

If ending inventory is understated by $8,000 in 20X3,and assuming a constant 30% tax rate,then what will be the effect on retained earnings on December 31,20X4?

• A)The 20X4 ending retained earnings will be understated by $2,400.
• B)The 20X4 ending retained earnings will be overstated by $2,400.
• C)The 20X4 ending retained earnings will be understated by $5,600.
• D)The 20X4 ending retained earnings will be overstated by $5,600.
• E)The 20X4 ending retained earnings will not be understated or overstated.

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Definitions:

Unethical Behaviour

Unethical behaviour refers to actions that violate moral principles or professional standards, often causing harm or showing disregard for the well-being of others or the environment.

Traditional Masculine

Refers to the cultural norms and behaviors that have historically been associated with men and masculinity.

Sexual Harassment

Unwanted sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature, often creating a hostile or offensive working environment.

Feminine Personality Traits

Personality characteristics often culturally associated with women, including empathy, sensitivity, and nurture, influencing behavior and interactions.