In 2015,ending Inventory Is Overstated

question 48

Multiple Choice

In 2015,ending inventory is overstated.What is the effect of the error on net income in 2015 and 2016?

• A)net income is overstated in 2015 and understated in 2016
• B)net income is understated in 2015 and overstated in 2016
• C)net income is understated in 2015 and 2016
• D)net income is overstated in 2015 and 2016

Grasp the concept of privity and near-privity in the context of accountant liability.

Identify the requirements and implications of the Sarbanes-Oxley Act on accountants’ responsibilities and working paper maintenance.

Comprehend the role and consequences of negligence, fraud, and constructive fraud in the context of accountant liability.

Understand the legal environment and liability standards for accountants in various jurisdictions, including Canada.

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Definitions:

mRNA Codons

Triplet sequences of nucleotides in messenger RNA that specify which amino acid will be added next during protein synthesis.

Leucine

Leucine is an essential amino acid necessary for protein synthesis and various metabolic functions in the body, not synthesized by the organism and must be obtained from the diet.

Template DNA

Strands of DNA that serve as guides for synthesizing complementary DNA or RNA molecules during genetic replication and transcription.

Parallel

Occurring or existing at the same time or in a similar manner, often in comparison to something else.