An Error in the Ending Inventory for the Year Ended

question 52

Multiple Choice

An error in the ending inventory for the year ended December 31, 2010:

• A)automatically creates errors in cost of goods in the 2010 and 2011 financial statements.
• B)has no effect on the 2010 financial statements, but will create an error in the 2011 financial statements.
• C)automatically creates errors in the ending inventory balance in the 2010 and 2011 financial statements.
• D)affects only the 2010 financial statements.

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Definitions:

Somatic

Relating to or affecting the body, especially as distinct from the mind.

Parasympathetic

Part of the autonomic nervous system responsible for regulating the body's rest and digest response.

Central

Relating to the center or most important part.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.