If Ending Inventory for the Year Ended December 31,2016,is Overstated

question 96

Multiple Choice

If ending inventory for the year ended December 31,2016,is overstated by $25,000:

• A) net income for 2017 will be understated by $25,000
• B) net income for 2017 will be overstated by $25,000
• C) ending inventory for 2017 will be understated by $25,000
• D) beginning inventory for 2017 will be understated by $25,000

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Definitions:

Paying For Performance

A compensation strategy that rewards employees based on their job performance, often with bonuses or other incentives.

Good Performance

The act of achieving or exceeding the set standards of tasks or goals in a workplace or educational setting.

Performance Measures

Quantitative or qualitative indicators used to evaluate and track the efficiency, productivity, or success of an individual, team, or organization's outputs.

Deficient

Lacking in some necessary quality or element; insufficient or inadequate.