An Error in the Period-End Inventory Causes an Offsetting Error

question 31

Multiple Choice

An error in the period-end inventory causes an offsetting error in the next period and therefore:

• A) Managers can ignore the error.
• B) It is sometimes said to be self-correcting.
• C) It affects only income statement accounts.
• D) If affects only balance sheet accounts.
• E) Is immaterial for managerial decision making.

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Definitions:

Complex Sentence

A sentence type that contains one independent clause and at least one dependent clause, expressing complicated thoughts with more detail.

Independent Clause

An independent clause is a group of words that contains a subject and a verb and expresses a complete thought, capable of standing alone as a sentence.

Dependent Clause

A group of words with a subject and verb that cannot stand alone as a complete sentence.

Poor Organization

Poor organization refers to a lack of structure or order in a context, leading to inefficiency, confusion, and an inability to achieve goals effectively.