An Error in the Ending Inventory for the Year Ended

question 41

Multiple Choice

An error in the ending inventory for the year ended December 31,2016:

• A) automatically creates errors in cost of goods in the 2016 and 2017 financial statements
• B) has no effect on the 2016 financial statements but will create an error in the 2017 financial statements
• C) automatically creates errors in the ending inventory balance in the 2016 and 2017 financial statements
• D) affects only the 2016 financial statements

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Definitions:

Federal Budget Deficit

The shortfall in the federal government's revenue compared to its expenditures over a specified period, typically a fiscal year.

Federal Budget Deficits

The financial situation where the government's expenditures surpass its revenues within a specified fiscal period.

Reagan Administration

The executive branch of the U.S. government led by President Ronald Reagan from 1981 to 1989, known for its conservative policies, including tax cuts and deregulation.

Fiscal Policy

Governmental actions related to changes in taxation and spending levels intended to influence economic activity.