Which of the Following Is Affected as a Result of an Error

question 118

Multiple Choice

Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting period?

• A) sales revenue
• B) operating expenses
• C) net income
• D) net cost of purchases

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Definitions:

Appraisal Remedies

Legal remedies that allow shareholders to receive a fair valuation and compensation for their shares, typically in cases of mergers or acquisitions.

Fair Value

A financial accounting term referring to the estimated market value of an asset or liability based on current market prices.

Dissents

are expressions of disagreement or opposition to a prevailing idea or direction, especially in a legal or political context.

Corporate Action

Acts undertaken by a corporation’s board of directors that bring about changes in the capital structure or operations of the company.