Ending Inventory for the Current Period Is Understated

question 69

Multiple Choice

Ending inventory for the current period is understated.What effect will this error have on equity?

• A) Equity will be overstated at the end of the current period, but it will be correct at the end of the next period.
• B) Equity will be overstated at the end of the current period and understated at the end of the next period.
• C) Equity will be understated at the end of the current period, but it will be correct at the end of the next period.
• D) Equity will be overstated at the end of the current period and overstated at the end of the next period.

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Definitions:

Device

A device is an object or machine designed to perform a specific task or function, often used to refer to technological items or medical apparatus.

Gonorrhea

A sexually transmitted bacterial infection caused by Neisseria gonorrhoeae, affecting mucous membranes, particularly in the genital tract.

Urination

The process of excreting urine from the urinary bladder through the urethra to the outside of the body.

Discharge

The release or expulsion of a substance from a body or system, or in a legal context, the release of an individual from custody or obligation.