A $15,000 Overstatement of the 2018 Ending Inventory Was Discovered

question 82

Multiple Choice

A $15,000 overstatement of the 2018 ending inventory was discovered after the financial statements for 2018 were prepared.How would that inventory error impact the 2018 financial status?

• A)Current assets were overstated and net income was understated.
• B)Current assets were understated and net income was understated.
• C)Current assets were overstated and net income was overstated.
• D)Current assets were understated and net income was overstated.

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Definitions:

Incision

A surgical cut made in the skin or flesh by a sharp instrument, often as the first step in an operative procedure.

AntiCOAGulant

A medication used to prevent or reduce blood coagulation (clotting), often prescribed to reduce the risk of stroke or heart attack.

International Normalized Ratio

A blood test value that measures the time it takes for blood to clot and compares it to an average.

Preadmission Testing

Medical tests conducted before admission to a hospital or before an operation to assess the patient's health status and risk factors.