In 2019,ending Inventory Is Overstated

question 48

Multiple Choice

In 2019,ending inventory is overstated.What is the effect of the error on total stockholders' equity in 2019 and 2020?

• A)Total stockholders' equity is overstated in 2019 and 2020.
• B)Total stockholders' equity is understated in 2019 and 2020.
• C)Total stockholders' equity is overstated in 2019 and correctly stated at the end of 2020.
• D)Total stockholders' equity is overstated in 2019 and understated in 2020.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company and usually rights to dividends and voting on corporate matters.

HMOs

Health Maintenance Organizations; a type of health insurance plan that provides healthcare services to members through a network of doctors, hospitals, and other healthcare providers.

Americans

Residents or citizens of the United States, although the term can also broadly refer to people from the American continent.

HMOs

Health Maintenance Organizations, a type of health insurance plan that provides a wide range of healthcare services through a network of providers for a fixed annual fee.