Prunedale Co

question 106

Multiple Choice

Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, Prunedale's cost of goods sold for this year was:

• A) Overstated by $94,000.
• B) Overstated by $30,000.
• C) Understated by $94,000.
• D) Understated by $30,000.

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Definitions:

Balance Sheet Approach

A method used in expatriate compensation that aims to equalize cost differences between the home country and the host country.

Compensating Expatriate Managers

The process of determining and providing adequate financial and non-financial benefits to managers who are temporarily assigned to work in foreign countries.

Financially

Pertaining to finance or finances, often used to describe actions or conditions relating to the management, investment, or allocation of money and assets.

Temporary Foreign Workers

Individuals from other countries who have been granted permission to work in a host country for a limited period of time, often to fill labor shortages.