In 2015,ending Inventory Is Overstated

question 113

Multiple Choice

In 2015,ending inventory is overstated.What is the effect of the error on total stockholders' equity in 2015 and 2016?

• A)total stockholders' equity is overstated in 2015 and 2016
• B)total stockholders' equity is understated in 2015 and 2016
• C)total stockholders' equity is overstated in 2015 and correctly stated at the end of 2016
• D)total stockholders' equity is overstated in 2015 and understated in 2016

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Definitions:

Negative Income Tax

A proposed system of income support that involves the government paying a guaranteed income to those earning below a certain threshold, essentially a form of welfare.

Two-Tiered Plan

An arrangement or plan that has two levels of operation, benefits, or charges, often used in healthcare, compensation, or service delivery models.

Libertarians

Individuals who advocate for minimal government intervention in the private lives of citizens and emphasize individual freedom and voluntary association.

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.