If a Company Mistakenly Counts More Items During a Physical

question 146

Multiple Choice

If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line?

• A) no change to net income
• B) net income will be overstated
• C) net income will be understated
• D) only gross profit will be affected

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Definitions:

Employee Benefit Programs

Packages offered by employers which may include retirement plans, health insurance, life insurance, and other perks, intended to attract and retain employees.

Conference Board of Canada

An independent, not-for-profit research organization that specializes in economic trends, organizational performance, and public policy issues in Canada.

Financial Contributions

The act of providing monetary resources to support a project, individual, organization, or cause.

Canada Pension Plan

A governmental social insurance program in Canada that provides retirement, disability benefits, and survivor benefits.