A Company Fails to Record One Storeroom Full of Inventory

question 94

Multiple Choice

A company fails to record one storeroom full of inventory in its year-end inventory records.As a result,this will cause an

• A)overstatement of inventory on the year-end balance sheet.
• B)understatement of gross profit in the following year.
• C)overstatement of retained earnings at the end of the year.
• D)overstatement of cost of goods sold for the current year.

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Definitions:

Diversity

Refers to the inclusion of different types of people (such as people of different races, cultures, genders) in a group or organization.

Feelings

Emotional states or reactions that are subjectively experienced as part of an individual's consciousness.

Exclusion

The act of preventing someone's participation or access to a group, activity, or resource.

Conflict

A struggle or clash between opposing forces, arising from differences in ideas, values, or interests.