An Error in the Ending Inventory for the Year Ended

question 116

Multiple Choice

An error in the ending inventory for the year ended December 31,2015:

• A)automatically creates errors in Cost of Goods Sold in the 2015 and 2016 financial statements.
• B)has no effect on the 2015 financial statements,but will create an error in the 2016 financial statements.
• C)automatically creates errors in the ending inventory balance in the 2015 and 2016 financial statements.
• D)affects only the 2015 financial statements.

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Definitions:

Economic Growth

An increase in the production and consumption of goods and services, indicating the improving economic health of a region or nation over time.

Tragedy of the Commons

A situation in economic theory where individual users consuming shared resources act according to their own self-interest contrary to the common good of all users, leading to resource depletion.

Agricultural Sustenance

Practices and methods of farming that support the long-term productivity and health of the land, aiming for food security and environmental sustainability.

Pollution Prevention

Strategies and practices aimed at reducing or eliminating the production of pollutants at their source, rather than managing them after they have been created.