Use This Information to Answer the Following Question

question 43

Multiple Choice

Use this information to answer the following question.

In addition, beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
If beginning and ending merchandise inventories were ignored in computing net income,then net income would be

• A)understated by $11,000.
• B)overstated by $4,000.
• C)understated by $7,000.
• D)understated by $4,000.

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Definitions:

Customer Complaint

A form of feedback where a customer expresses dissatisfaction with a product or service.

Cover Up

An attempt to hide a mistake, wrongdoing, or embarrassing information from being made public.

Blame

The act of attributing responsibility for a fault or wrong to someone or something.

Ethical Approach

A perspective or method guided by moral principles, focusing on right and wrong conduct, fairness, and respect for others.