An Error in the Ending Inventory for the Year Ended

question 174

Multiple Choice

An error in the ending inventory for the year ended December 31, 2011:

• A) automatically creates errors in cost of goods in the 2011 and 2012 financial statements.
• B) has no effect on the 2011 financial statements, but will create an error in the 2012 financial statements.
• C) automatically creates errors in the ending inventory balance in the 2011 and 2012 financial statements.
• D) affects only the 2011 financial statements.

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Definitions:

Decremental

Characterized by a gradual reduction or decline in quality, quantity, or size.

Incidental

Occurring as a minor or secondary consequence.

nPow

A concept in psychology that refers to the need for power, or an individual's desire to influence, control, or have an impact on others.

nAch

Refers to the neurotransmitter acetylcholine's role in cognitive function and muscular activation; also a short form for the need for achievement.