Which of the Following Is Affected as a Result of an Error

question 118

Multiple Choice

Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting period?

• A) sales revenue
• B) operating expenses
• C) net income
• D) net cost of purchases

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Definitions:

Prospectus

A formal document that companies must publish before issuing public stock, detailing the investment offering and associated risks.

Misrepresentation

A false statement or lie that deceives, misleads, or distorts the truth, potentially resulting in legal action.

Job Termination

The end of an employee's tenure with an employer, which can be voluntary (resignation) or involuntary (dismissal or layoffs).

Government Prosecution

The process by which a governmental authority charges an individual or entity with a crime and pursues formal charges in a court of law.