Aaron Company Uses the Periodic Inventory System

question 68

Multiple Choice

Aaron Company uses the periodic inventory system.If Aaron's ending inventory is understated due to an accounting error,what is the effect on net income and the ending balance of retained earnings?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Influence

The ability to affect the behavior of others in a particular direction.

Abundant Supply

A situation where there's a large quantity of something available, exceeding the demand.

Data

Information collected for reference or analysis, often used to inform decisions or understand trends.

Conclusions

The judgments or decisions reached after careful consideration of facts and observations.