The Ending Merchandise Inventory for the Current Year Is Overstated

question 103

Multiple Choice

The ending merchandise inventory for the current year is overstated by $20,000.What effect will this error have on the following year's Net Income?

• A)The net income will be overstated by $40,000.
• B)The net income will be overstated by $20,000.
• C)The net income will be understated by $20,000.
• D)The net income will be understated by $40,000.

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Definitions:

Exposures

The number of times potential customers come into contact with a marketing message or advertisement.

Encodes

The process of converting data into a particular form, often for the purpose of security, storage, or transmission efficiency.

IMC Communication Process

An approach to achieving the objectives of a marketing campaign through the well-coordinated use of different promotional methods that are intended to reinforce each other.

Transmitter

A device that sends out a signal, message, or broadcast to a receiver.