Roseland Company Uses the Periodic Method of Accounting for Inventory

question 2

Multiple Choice

Roseland Company uses the periodic method of accounting for inventory.Unfortunately, the sales manager of Roseland Company failed to record a valid sale on account of merchandise that had been shipped to a customer prior to the end of the current year. However, he did exclude the merchandise from inventory at the end of the current year.As a result of this error, Roseland Company's

• A)total assets are overstated for the current year.
• B)total expenses are understated for the current year.
• C)net income is overstated for the current year.
• D)total assets are understated at the end of the current year.
• E)none of the above

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Definitions:

Subjects

Participants in a research study.

Arms Control

Measures aimed at controlling the development, testing, deployment, and proliferation of weapons, especially nuclear weapons, to reduce the potential for armed conflict and promote international security.

Pros and Cons

The advantages and disadvantages of a particular decision, course of action, or situation, considered to help make a more informed decision.

Groupthink

A psychological phenomenon occurring within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.