A Corporation Compiled the Information Given Below for Their Auditor

question 9

Multiple Choice

A corporation compiled the information given below for their auditor. The corporation uses a periodic inventory system. $\begin{array} { | l | l | l | } \hline & 2001 & 2002 \\\hline \text { Purchases } & \$ 240 & \$ 160 \\\hline \text { Goods out on consignment } & 0 & 80 \\\hline \text { Beginning inventory } & 900 & ? \\\hline \text { Ending inventory } & ? & ? \\\hline \text { Physical inventory count } & \text { Unavailable } & 240 \\\hline \text { Cost of goods sold } & 360 & ? \\\hline\end{array}$
What was the amount of cost of goods sold for 2002?

• A) $620
• B) $700
• C) $780
• D) $900

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Definitions:

Contrast Error

The distortion in performance appraisal arising when an employee's evaluation is influenced by comparison with a previously evaluated employee rather than objective standards.

Interviewer

The interviewer is a person who asks questions in a structured or unstructured format to gather information, opinions, or data from interviewees.

Applicant

An individual who applies for a job, program, or opportunity.

Halo Effect

A cognitive bias where an individual's overall impression of a person influences how they feel and think about that person's character or properties.