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

---

Definitions:

Current Flow

The flow of electric charge carriers like electrons through a conductor or space.

Power Dissipation

The conversion of electrical energy into heat in various components of a circuit, often leading to energy loss.

Resistors

Components used in electrical circuits to limit or regulate the flow of electrical current, often for the purpose of generating heat or dropping voltage.

Current Path

The path or route that electric current follows as it flows through a circuit.