Walter Co Made the Following Errors in 2014: Ending Inventory Was

question 86

Multiple Choice

Walter Co. made the following errors in 2014: Ending inventory was overstated by $2,000.
Beginning inventory was understated by $6,000.
Purchases were overstated by $3,000.
Reported net income was $20,000. The correct 2014 net income was

• A) $19,000
• B) $21,000
• C) $15,000
• D) $ 4,000

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Definitions:

Stereotype Threat

The risk of conforming to stereotypes about one's social group, which can hinder performance and behavior.

Social Identity Threat

The experience of feeling at risk of confirming a negative stereotype about one's social group, which can negatively affect performance and wellbeing.

Self-affirmation

A psychological theory suggesting that individuals can maintain their sense of self-integrity by telling themselves (affirming) positive truths about themselves.

Stereotype Threat

The anxiety or concern experienced when one fears being judged or treated unfairly based on negative stereotypes about their group.