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:

Self-Presentation Concerns

The consideration and management of how one is viewed by others, often leading to behaviors aimed at creating a favorable impression.

Reactance

A motivational response to restrictions on personal freedoms, often leading to resistance against the constraints.

Lying

The act of communicating false information with the intention of deceiving the recipient.

Personal Experiences

Individual encounters or events that contribute to one's understanding, beliefs, and perspectives.