If a Company Overstates Its Ending Balance of Inventory in Year

question 114

Multiple Choice

If a company overstates its ending balance of inventory in year 1 and it records inventory correctly in year 2,which one of the following is true?

• A)Net income is overstated in year 2.
• B)Cost of goods sold is overstated in year 1.
• C)Net income is understated in year 1.
• D)Retained earnings is overstated in year 1.

Understand the concept of socioemotional competence and its significance in children's social interactions.

Analyze the role of social conventions and rules in children's behavior and development.

Explore the concept of effortful control and self-regulation in childhood.

Understand the factors contributing to and mechanisms for controlling aggression in children.

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Definitions:

Retroactive Interference

Retroactive interference occurs when newly learned information interferes with the recall of previously learned information.

Encoding Specificity

The principle that suggests how we encode information into memory is specific to the context in which it is learned and that this encoding specificity affects how it is recalled.

Retrieval Cues

Specific stimuli or prompts that aid the recall of information stored in long-term memory, enhancing the ability to retrieve previously learned material.

Actor-observer Effect

The inclination to ascribe personal actions to external factors, while assigning the actions of others to their inherent traits.