An Error in the Period-End Inventory Causes an Offsetting Error

question 31

Multiple Choice

An error in the period-end inventory causes an offsetting error in the next period and therefore:

• A) Managers can ignore the error.
• B) It is sometimes said to be self-correcting.
• C) It affects only income statement accounts.
• D) If affects only balance sheet accounts.
• E) Is immaterial for managerial decision making.

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Definitions:

Contraception

The deliberate use of artificial methods or other techniques to prevent pregnancy as a consequence of sexual intercourse.

Early Marriage

The practice of marrying at a young age, often defined as before the age of 18.

Organ Reserve

The capacity of organs to function beyond their usual needs, allowing for the body to handle increased stress or damage.

Homeostasis

The process by which living organisms maintain a stable internal environment despite changes in external conditions, essential for the survival and proper functioning of cells and systems.