In the Following Questions, Inventory Errors Are Noted for 2009

question 94

Essay

In the following questions, inventory errors are noted for 2009. Assume that the errors are not discovered until 2010, and that the company uses a periodic inventory system. Indicate the effect of the error, if any, on the accounts noted in the columns, using the following code:
U = understated; O = Overstated; NE = No effect

- $$\begin{array} { | c | c | c | } \hline \text { Error } & \text { Cost of goods sold } & \text { Retained earnings } \\\hline \text { Double counted items in ending inventory } & & \\\hline\end{array}$$

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Definitions:

Excitatory PSPs

Excitatory postsynaptic potentials are increases in potential that bring a neuron closer to the threshold for firing, facilitating the transmission of signals.

Inhibitory PSPs

Post-synaptic potentials that make a post-synaptic neuron less likely to generate an action potential.

Absolute Refractory Period

A period immediately following the firing of a nerve fiber when it cannot be stimulated for a brief period, regardless of how strong the incoming stimulus may be.

Relative Refractory Period

A period shortly after the firing of a nerve during which the nerve cannot be stimulated to fire again at its maximum rate, but can still respond to a stronger than usual stimulus.