Which of the Following Errors Will Normally Result in Overstatement

question 62

Multiple Choice

Which of the following errors will normally result in overstatement of 2015 net income?

• A) failure to record merchandise purchases in 2014
• B) understatement of 2014 ending merchandise inventory
• C) failure to record accrued salaries expense in 2014
• D) overstatement of prepaid expense in 2014

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Definitions:

Hardy People

Individuals characterized by resilience and the ability to cope effectively with stress and adversity, often exhibiting a positive outlook and strong commitment despite challenges.

Commitment, Control, Challenge

These are the three components of psychological hardiness, a personality trait that enables individuals to cope more effectively with stress.

Hostility

An emotion characterized by anger, antagonism, and aggression towards others, often resulting in conflict.

Type A Personality

Person who is ambitious, time conscious, extremely hardworking, and tends to have high levels of hostility and anger as well as being easily annoyed.