During the Taking of Its Physical Inventory on December 31

question 78

Multiple Choice

During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $350,000 instead of the correct amount of $280,000. The effect on the balance sheet and income statement would be as follows:

• A) assets overstated by $70,000;retained earnings understated by $70,000; net income statement understated by $70,000.
• B) assets overstated by $70,000;retained earnings understated by $70,000; no effect on the income statement.
• C) assets and retained earnings overstated by $70,000; net income overstated by $70,000.
• D) assets and retained earnings overstated by $70,000; net income understated by $70,000.

Understand the factors influencing handedness and artistic development in early childhood.

Understand the basic principles and objectives of tort law.

Distinguish between intentional torts, negligence, and strict liability.

Recognize the defenses available in tort actions.

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Definitions:

Interstate Commerce Commission

A regulatory agency in the United States established to oversee railroad rates and later expanded to other modes of transportation, until its operations were phased out in the late 20th century.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.

Employee Share Ownership Plans

Programs that enable employees to own a stake in the company they work for, fostering a sense of ownership and incentivizing performance.

Share Options

Are financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a company at a predetermined price within a specified timeframe.