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:

Logrolling

In politics, a practice where two or more parties agree to vote for each other's proposed bills or initiatives, though it can also refer to the exchange of favors or quid pro quo among legislators.

Majority Rule Voting

Majority rule voting is a decision-making process where the option that receives more than half of the votes cast is chosen.

Majority-Rule Voting

A voting system where the option that receives more than half of the votes wins.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed bills or policies to ensure mutual benefit.