The Ending Merchandise Inventory for the Current Year Is Overstated

question 107

Multiple Choice

The ending merchandise inventory for the current year is overstated by $28,000.What effect will this error have on the following year's net income?

• A)The net income will be overstated by $56,000.
• B)The net income will be overstated by $28,000.
• C)The net income will be understated by $28,000.
• D)The net income will be understated by $56,000.

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Definitions:

Workforce

The group of people engaged in or available for work, either in a country or organization, including both employees and the potential labor pool.

Collaboration

The action of working with someone to produce or create something, emphasizing teamwork and collective effort.

Interpersonal Communication

The direct, face-to-face communication between two or more individuals.

Nonverbal Communication

The conveyance of messages or information through means other than spoken or written words, such as gestures, facial expressions, and body language.