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:

Drug Addiction

A chronic disorder characterized by compulsive drug seeking, continued use despite harmful consequences, and long-lasting changes in the brain.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, involving cognitive, emotional, and behavioral components.

Attention

The mental process of concentrating on one piece of information, object, or activity while ignoring other stimuli.

Pleasure Receptors

Specialized nerve cells or neural mechanisms in the body that respond to certain stimuli by generating a sensation of pleasure or reward.