In Inventorying Goods at December 31, a Company Incorrectly Included

question 65

Multiple Choice

In inventorying goods at December 31, a company incorrectly included some items received on consignment. The error causes an:

• A) understatement of inventory, purchases, and accounts payable.
• B) overstatement of net income and assets by the same amount.
• C) understatement of income and assets by the same amount.
• D) overstatement of inventory, purchases, and accounts payable.

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Definitions:

Classical Endocrine Signaling

A method of cellular signaling wherein hormones are released by glands into the bloodstream and transported to target organs or tissues to elicit specific physiological responses.

Insulin-like Growth Factor

A protein with high similarity to insulin; it plays an important role in childhood growth and continues to have anabolic effects in adults.

Second Messenger

A substance inside a cell that acts as a signal molecule in response to an external stimulus, transmitting the message initiated by the first messenger.

Neuroendocrine Signaling

Neuroendocrine cells produce neurohormones that are transported down axons and released into the interstitial fluid.