Prunedale Co

question 90

Multiple Choice

Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,000, and its ending inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, Prunedale's cost of goods sold for this year was:

• A)Overstated by $31,000.
• B)Overstated by $5,000.
• C)Understated by $31,000.
• D)Understated by $48,000.

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Definitions:

UCS

An abbreviation for Unconditioned Stimulus, a stimulus in classical conditioning that automatically triggers a response without any prior learning.

Determinism

The philosophical concept that all events, including moral choices, are determined completely by previously existing causes.

Structuralism

a method of interpretation and analysis in psychology, linguistics, and anthropology that views elements of human culture in terms of their relationship to a larger, overarching system or structure.

Pantheism

The belief or doctrine that God is identical with the universe, or that everything composes an all-encompassing, immanent God.