Since an Error in the Period-End Inventory Causes an Offsetting

question 76

Multiple Choice

Since an error in the period-end inventory causes an offsetting error in the next period:

• A)Managers can ignore the error.
• B)It is said to be self-correcting.
• C)It affects only income statement accounts.
• D)If affects only balance sheet accounts.
• E)Is immaterial for managerial decision making.

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Definitions:

Schedule C

A financial document utilized by individual business owners to declare their business's earnings or deficits.

Deductible Expenditure

An expense that can be subtracted from gross income to reduce taxable income, often related to business or specified personal expenses.

Travel Expense Deduction

Tax deductions allowed for expenses incurred while traveling for business purposes.

Sightseeing

The activity of visiting places of interest or natural beauty, especially during travel or holidays.