If an Error in Valuing Inventory Occurs in One Year

question 132

Multiple Choice

If an error in valuing inventory occurs in one year:

• A)It has no effect upon income in the following year.
• B)It has no effect upon the income statement,only on the balance sheet.
• C)It is self-correcting after two years.
• D)Retained earnings will be adversely affected until corrected.

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Definitions:

Vent

To release or express emotions, thoughts, or frustrations in a verbal manner.

Discrimination

Treating someone differently based on a characteristic.

Workplace

A location or environment where people are employed and perform their jobs, such as an office, factory, or store.

Illegal

Contrary to or forbidden by law, encompassing actions or activities not authorized by legal statutes.