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:

Probable Cause

A reasonable basis for believing that a crime may have been committed or that evidence of the crime is present in the place to be searched.

Communication

The exchange of information, thoughts, or messages between people through speaking, writing, or other media.

Psychosocial Needs

Refers to the necessary support for an individual's psychological development and social interactions, emphasizing the importance of mental health and community.

Sending And Receiving

The process involved in the transmission and reception of messages or information between individuals or systems.