Use This Information to Answer the Following Question

question 87

Multiple Choice

Use this information to answer the following question. In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
If beginning and ending merchandise inventories were ignored in computing net income, then net income would be

• A) understated by $22,000.
• B) overstated by $8,000.
• C) understated by $14,000.
• D) understated by $8,000.

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Definitions:

Executed Contract

An agreement that has been fully performed by all parties involved, fulfilling all obligations specified in the contract.

Clickwrap Contracts

Agreements where acceptance is signaled by the user clicking an "I accept" button on a website, commonly used in software licenses and online transactions.

Shrinkwrap Contracts

Agreements whose terms are only revealed after opening the packaging of a product, often enforceable once the package is opened.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressure against them, raising questions about the voluntariness of the act.