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:

Small-Scale Producers

Individuals or businesses engaged in the creation or manufacture of goods in limited quantities, often characterized by handcrafted techniques and personalized outputs.

Complex Society

A society characterized by a hierarchical structure, specialization of labor, and the presence of complex institutions.

Community

In primatology, a unit of primate social organization composed of fifty or more individuals who collectively inhabit a large geographical area.

Work

An activity involving mental or physical effort done to achieve a purpose or result, often associated with earning a livelihood in the context of employment.