Upaway Company Hired Some Students to Help Count Inventory During

question 9

Multiple Choice

Upaway Company hired some students to help count inventory during their semester break.Unfortunately,the students added incorrectly and ending inventory was overstated by $12,000.What would be the effect of this error in ending inventory?

• A)Profit would be overstated.
• B)Profit would be understated.
• C)Ending retained earnings would be understated.
• D)Cost of goods sold would be overstated.

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of a human's genetic development.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the first eight weeks of development post-conception.

Placenta

A temporary organ that develops in female mammals during pregnancy, connecting the fetus to the uterine wall for nutrient uptake, waste elimination, and gas exchange via the mother's blood supply.

Fetus

A developing mammal or human from the end of the embryonic period (usually two months after conception) until birth.