On December 27, Cloud Corp

question 128

Multiple Choice

On December 27, Cloud Corp. accepted delivery of merchandise that it purchased on account. As at December 31, Cloud had recorded the transaction, but did not include the merchandise in its year-end inventory. The effect of this on its December 31 financial statements would be

• A) net income, current assets, and retained earnings were understated.
• B) net income was correct and current assets were understated.
• C) net income was understated and current liabilities were overstated.
• D) net income was overstated and current assets were understated.

Comprehend the role of safety stock in MRP and its impact on inventory management.

Recognize the integration and differences between Just-In-Time (JIT) inventory strategies and MRP.

Understand the impact of Jean Piaget on cognitive psychology.

Recognize the core principles of Maslow's humanistic perspective.

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Definitions:

Price-Inelastic Demand

A situation where the demand for a good or service is relatively unaffected by changes in its price.

Household Budget

a financial plan that allocates future personal income towards expenses, savings, and debt repayment.

Market Changes

Alterations or shifts in the conditions of a market, which can include changes in consumer preferences, technological advancements, or variations in supply and demand.

Necessity

A good or service that is essential for survival and basic quality of life, such as food and shelter.