A Company Using the Periodic Inventory System Correctly Recorded a Purchase

question 16

Multiple Choice

A company using the periodic inventory system correctly recorded a purchase of merchandise,but the merchandise was not included in the physical inventory count at the end of the accounting period.The error caused which of the following?

• A)An understatement of both net income and inventory.
• B)An overstatement of inventory,purchases,and accounts payable.
• C)An understatement of inventory,purchases,and accounts payable.
• D)An overstatement of net income and inventory.

Recognition of the key securities regulatory bodies and their filing systems in Canada.

Distinguish between various financial intermediaries and their regulatory obligations.

Understand the exemptions from the prospectus requirement under Canadian securities law.

Comprehend the definitions and identifications of insiders and their legal implications.

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Definitions:

Services

Intangible products provided to consumers, including healthcare, education, banking, and entertainment, distinct from physical goods.

Savings Function

A mathematical expression that depicts how savings vary with changes in income, usually stating that savings are a function of disposable income.

Induced Consumption

The portion of consumer spending that varies with changes in disposable income, suggesting that as people earn more, they spend more.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the basic level of consumption that does not vary with disposable income.