If a Company Mistakenly Counts More Items During a Physical

question 146

Multiple Choice

If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line?

• A) no change to net income
• B) net income will be overstated
• C) net income will be understated
• D) only gross profit will be affected

---

Definitions:

Social Darwinism

The application of Darwin's theory of natural selection to social, political, and economic issues, often used to justify political conservatism, imperialism, and racism.

Scientific Activity

The process of conducting systematic research to increase knowledge, utilizing empirical evidence and scientific methods.

Public Spaces

Areas that are open and accessible to people, including parks, streets, and public squares, serving as venues for interaction and community life.

Intrinsic Motivation

The desire to behave in a certain way because it is enjoyable or satisfying in and of itself.