If Ending Inventory on December 31, 2010, Is Overstated, Then

question 69

Multiple Choice

If ending inventory on December 31, 2010, is overstated, then:

• A)cost of goods sold for the year ended December 31, 2011, will be understated.
• B)cost of goods sold for the year ended December 31, 2010, will be overstated.
• C)gross profit for the year ended December 31, 2010, will be understated.
• D)gross profit for the year ended December 31, 2011, will be understated.

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Definitions:

Ethical Imperialism

An attempt to impose your ethical standards on other cultures.

Universalism

Suggests ethical standards apply across all cultures.

Cultural Relativism

Suggests there is no one right way to behave; ethical behaviour is determined by its cultural context.

Ethical Unethical

Pertaining to the distinction between actions or decisions that are morally right (ethical) and those that are morally wrong (unethical).