If a Company Mistakenly Counts More Items During a Physical

question 136

Multiple Choice

If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line?

• A) No change to net income.
• B) Net income will be overstated
• C) Net income will be understated.
• D) Only gross profit will be affected.

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Definitions:

Respectful Behavior

Respectful behavior denotes acting in a way that shows consideration, appreciation, and regard for others' feelings, rights, and traditions.

Culturally Contingent

Describes beliefs, practices, or attitudes that are dependent on specific cultural contexts or norms, indicating that they can vary greatly across different cultures.

Individualism

The belief that the values and goals of the individual are primary.

Trustworthiness

The quality of being reliable and deserving of trust, important in establishing credibility and dependable relationships.