In the Following Questions, Inventory Errors Are Noted for 2016

question 78

Essay

In the following questions, inventory errors are noted for 2016. Assume that the errors are not discovered until 2017, and that the company uses a periodic inventory system. Indicate the effect of the error, if any, on the accounts noted in the columns, using the following code:
U = Understated; O = Overstated; NE = No effect

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Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.

Schizotypal Personality Disorder

A mental disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Depressed Mood

A persistent feeling of sadness, hopelessness, or a lack of interest or pleasure in activities, characteristic of depression.