If a Company Mistakenly Counts Less Items During a Physical

question 47

Multiple Choice

If a company mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of merchandise sold?

• A) Understated
• B) Overstated
• C) No change.
• D) Only inventory is affected.

---

Definitions:

Amylase

An enzyme, found chiefly in saliva and pancreatic fluid, that converts starch and glycogen into simple sugars.

Triglycerides

A type of fat found in the bloodstream and fat tissue, serving as a major energy source for the body.

Monoglycerides

Molecules formed from the breakdown of fats, consisting of a single fatty acid attached to a glycerol backbone.

Deionized Water

Water from which ions have been removed, making it highly pure.