Prunedale Co

question 85

Multiple Choice

Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the following year. As a result, Prunedale's cost of goods sold for this year was:

• A)Overstated by $94,000.
• B)Overstated by $30,000.
• C)Understated by $94,000.
• D)Understated by $30,000.Overstatement of beginning inventory overstates cost of goods sold and the understatement of ending inventory overstates cost of goods sold: $32,000 + 62,000 = $94,000 overstatement of cost of goods sold

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Definitions:

Crowd Status

Relates to an individual's social ranking or position within a group, often influencing their interactions and relationships with other members of the group.

Cross-Ethnic Friendships

These are friendships formed between individuals belonging to different ethnic or racial backgrounds, promoting cultural exchange and understanding.

Racial Prejudice

Preconceived negative judgment or opinion about individuals based solely on their race.

Crowds

A large number of individuals gathered together, often sharing a common purpose or interest.