Merchandise Inventory at the End of the Year Was Understated

question 144

Multiple Choice

Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error?

• A) net income is understated
• B) net income is overstated
• C) cost of merchandise sold is understated
• D) merchandise inventory reported on the balance sheet is overstated

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Definitions:

Family Functions

are the roles and responsibilities that families perform to meet the needs of their members, such as emotional support and physical care.

Adequate Income

The level of income deemed sufficient for a person or family to meet their basic needs, such as housing, food, healthcare, and education.

Types of Bullying

Refers to various forms of bullying including physical, verbal, relational, and cyberbullying.

Peers Reject

The phenomenon where individuals are excluded or not accepted by their peer group.