During the Taking of Its Physical Inventory on December 31

question 160

Essay

During the taking of its physical inventory on December 31, 2011, Gentry Supplies Company incorrectly counted its inventory as $245,000 instead of the correct amount of $254,000. Indicate the affect of the misstatement on Gentry Supplies Company's balance sheet and income statement for the year ended December 31, 2011.

---

Definitions:

Formal-Operational Thought

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly and logically.

Assimilation

The mental process of integrating new information into current cognitive frameworks, views, and comprehension.

Imaginary Audience

A psychological concept where an individual imagines and believes that a group of people are constantly watching and judging them.

Personal Fable

The part of adolescent egocentrism that involves an adolescent’s sense of uniqueness and invincibility.