The ending merchandise inventory for the current year is overstated by $28,000. What effect will this error have on the following year's net income?
A) The net income will be overstated by $56,000.
B) The net income will be overstated by $28,000.
C) The net income will be understated by $28,000.
D) The net income will be understated by $56,000.
C
You might also like to view...
Which of the following are considered the main types of conflicts encountered by public managers?
A) Intrapersonal, interpersonal, intergroup, and intragroup B) Intrapersonal, interpersonal, intergroup, and team conflict C) Intrapersonal, interpersonal, team, and generational D) None of the above
Compare and contrast the ‘trait’ and ‘behavioural’ approaches to leadership.
What will be an ideal response?
Which of the following statements is true regarding activity-based costing in administration?
A. Activity-based costing for administrative services follows the same four-step procedure described for manufacturing. B. All cost drivers in an administrative system will be time-related. C. The principles of ABC are different when applied to administrative services. D. ABC in administration involves five steps.
Which of the following perils is not included in the causes-of-loss basic form of the ISO commercial package policy?
A) fire B) lightning C) explosion D) flood