If a Period-End Inventory Amount Is Reported in Error, It

question 171

Multiple Choice

If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except:

• A) Gross profit.
• B) Cost of goods sold.
• C) Current assets.
• D) Net sales.
• E) Net income.

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Definitions:

Attorney-Client Privilege

A legal principle that protects communications between a client and their attorney from being disclosed without the client's permission.

Accountant-Client Privilege

A legal privilege that keeps confidential communications between an accountant and their client protected from disclosure without the client's consent.

Testify

To give a formal statement of fact or evidence in a court of law, or in a legislative or administrative proceeding.

Disclaimer

A declaration intended to exclude legal responsibility and avoid the possibility of civil litigation for specific actions or neglect.