Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

A) net income is overstated, assets are overstated, owner's equity is understated
B) net income is overstated, assets are overstated, owner's equity is overstated
C) net income is understated, assets are understated, owner's equity is understated
D) net income is understated, assets are understated, owner's equity is overstated


B

Business

You might also like to view...

If a foreign company is taken over by the host country government, and some form of compensation is paid, "confiscation" has occurred

Indicate whether the statement is true or false

Business

In addition to addressing the needs of the primary and secondary audiences, how can a researcher identify who else may use the information being researched?

A) By asking who else may be affected by this problem or decision B) By asking what audience already knows C) By determining what questions will your audience expects you to answer when you present the research D) By asking what sources the audience expects you to consult E) By asking what the audience needs to know

Business

Which organizational pattern groups information around central themes or ideas that can help audience members remember the new information in chunks or groupings?

a. chronological b. topical c. spatial d. cause-and-effect

Business

One advantage of collaborative writing is ______.

A. it is less expensive B. it creates open lines of communication C. more people can become involved in the writing process D. both it is less expensive and more people can become involved in the writing process

Business