An Understatement of the Ending Inventory Balance Will Understate Cost

question 114

True/False

An understatement of the ending inventory balance will understate cost of goods sold and overstate net income.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation paired with relaxation exercises.

Deep Muscle Relaxation

A technique that involves the deliberate tensing and then gradual relaxing of muscle groups across the body to reduce stress and physical tension.

Flooding

A behavior therapy based on classical conditioning and used to treat phobias by exposing clients to the feared object or event (or asking them to imagine it vividly) for an extended period, until their anxiety decreases.

Time-out

A disciplinary technique that involves placing a child in a designated area for a short period to encourage reflection on inappropriate behavior.