Assume That Ending Inventory in Fiscal 2019 Is Overstated by $1,000.What

question 64

Multiple Choice

Assume that ending inventory in fiscal 2019 is overstated by $1,000.What impact will this have on fiscal 2019 financial reporting?

• A)Retained earnings is overstated by $1,000.
• B)No effect on inventory value on the balance sheet.
• C)No effect on retained earnings.
• D)Inventory is understated on the balance sheet.

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Definitions:

Money Income

The total earning or revenue received by an individual or household, including wages, salaries, benefits, and other monetary sources.

Indifference Map

A graphical representation that shows different combinations of goods between which a consumer is indifferent.

Budget Lines

A visual representation showcasing every potential pairing of two products that a consumer is able to purchase, considering their budget and the costs of these items.

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.