A $15,000 Overstatement of the 2011 Ending Inventory Was Discovered

question 76

Multiple Choice

A $15,000 overstatement of the 2011 ending inventory was discovered after the financial statements for 2011 were prepared.How would that inventory error impact the 2011 financial status?

• A)Current assets were overstated and net income was understated.
• B)Current assets were understated and net income was understated.
• C)Current assets were overstated and net income was overstated.
• D)Current assets were understated and net income was overstated.

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Definitions:

Cosmopolitan

A person or concept that is worldly and not limited by local or national boundaries, often exhibiting openness to different cultures.

American Children

Refers to children living in the United States, focusing on aspects of their well-being, education, lifestyle, and demographic characteristics.

Female Headed

Households or organizations led by a woman.

Poverty

A state or condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living.