Homework Answers
When ending inventory is understated by $10,000, it has the following effects :
1. Cost of goods sold is overstated.
2. Net income is understated.
3. Total assets are understated.
4. Stockholders' equity is u understated.
Hence, when ending inventory is understated by $10,000, cost of goods sold will be overstated by $10,000 and net income will be understated by $10,000.
Correct option is (d)
kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.
Add Answer to:
26. If ending inventory is understated by $10,000, the effect of this error in the current...
8. Fran Company's ending inventory for 2018 is understated by $5,000. The effects of this error...
8. Fran Company's ending inventory for 2018 is understated by $5,000. The effects of this error on the 2018's cost of goods sold and net income, respectively are: a. Understated and overstated b. Overstated and understated c. Overstated and overstated d. Understated and understated 9. In selecting an inventory costing method, give one issue that might be considered as part of the decision process.
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable...
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable value 23,600 Cost of goods sold (before consideration of the lower-of-cost-and-net-realizable-value rule) 37,000 Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net realizable value rule? A) Cost of goods sold will be $37,400. B) Cost of goods sold will be $36,400. C) Cost of goods sold will be $37,000. D) Ending inventory will be $24,000. 78) Inventory at...
The ending merchandise inventory for the current year is overstated by $25,000. What effect will this...
The ending merchandise inventory for the current year is overstated by $25,000. What effect will this error have on the following year's net income? O A. The net income will be understated by $25,000. OB. The net income will be understated by $50,000. OC. The net income will be overstated by $50,000. OD. The net income will be overstated by $25,000.
QUESTION 2 An error in the physical count of goods on hand at the end of...
QUESTION 2 An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory. The effect of this error in the current period is Cost of Goods Sold Understated Net Income Understated Cost of Goods Sold Overstated Net Income Overstated Cost of Goods Sold Understated Net Income Overstated Cost of Goods Sold Overstated Net Income Understated
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30 2020 Understated $40 2021 Indicate the error in the following items: Select one: a. 2022 Net Income 12/31/21 Retained Earnings Understated $10 No error b. 2022 Net Income 12/31/21 Retained Earnings Overstated $10 No error C. 2022 Net Income 12/31/21 Retained Earnings Understated $40 Understated $40 d. 2022 Net Income 12/31/21 Retained Earnings Overstated $40 Understated $40 e. 2022 Net Income 12/31/21 Retained Earnings...
On December 31, 20xx, Jones Company understated ending inventory by $52,000. How does this error affect...
On December 31, 20xx, Jones Company understated ending inventory by $52,000. How does this error affect Cost of Goods Sold and Net Income for 20xx? a.) Overstates Cost of Goods Sold and Net Income for 20xx? b.) Overstates both COGS and Net Income c.) Understates COGS and overstates Net Income d.) Leaves both COGS and Net Income correct because the errors cancel each other
Exer LO 2 Effects of inventory error Assume that the ending inventory of a merchandising firm...
Exer LO 2 Effects of inventory error Assume that the ending inventory of a merchandising firm is overstated by $20,000. Required: a. By how much and in what direction (overstated or understated) will the firm's cost of goods sold be misstated? b. If this error is not corrected, what effect will it have on the subsequent period's operating income? c. If this error is not corrected, what effect will it have on the total operating income of the two periods...
Merchandise inventory at the end of the year was understated. Which of the following statements correctly...
Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? Net income is understated Net income is overstated Cost of merchandise sold is understated Merchandise inventory reported on the balance sheet is overstated
Understating the ending inventory balance has the following impact on the current year's income statement: U...
Understating the ending inventory balance has the following impact on the current year's income statement: U A Cost of goods sold is overstated and net income is understated. B) Cost of goods sold is understated and net income is understated. Cost of goods sold is overstated and net income is overstated. D Cost of goods sold is understated and net income is overstated. OE) Cost of goods sold is overstated and net income is correct.
Cake Mart understated its ending inventory in the current year by $5000. The company incorrectly reported...
Cake Mart understated its ending inventory in the current year by $5000. The company incorrectly reported nett income of $100,000. Determine the effect of the error on the financial statement.
8. Fran Company's ending inventory for 2018 is understated by $5,000. The effects of this error on the 2018's cost of goods sold and net income, respectively are: a. Understated and overstated b. Overstated and understated c. Overstated and overstated d. Understated and understated 9. In selecting an inventory costing method, give one issue that might be considered as part of the decision process.
The ending merchandise inventory for the current year is overstated by $25,000. What effect will this error have on the following year's net income? O A. The net income will be understated by $25,000. OB. The net income will be understated by $50,000. OC. The net income will be overstated by $50,000. OD. The net income will be overstated by $25,000.
QUESTION 2 An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory. The effect of this error in the current period is Cost of Goods Sold Understated Net Income Understated Cost of Goods Sold Overstated Net Income Overstated Cost of Goods Sold Understated Net Income Overstated Cost of Goods Sold Overstated Net Income Understated
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30 2020 Understated $40 2021 Indicate the error in the following items: Select one: a. 2022 Net Income 12/31/21 Retained Earnings Understated $10 No error b. 2022 Net Income 12/31/21 Retained Earnings Overstated $10 No error C. 2022 Net Income 12/31/21 Retained Earnings Understated $40 Understated $40 d. 2022 Net Income 12/31/21 Retained Earnings Overstated $40 Understated $40 e. 2022 Net Income 12/31/21 Retained Earnings...
Exer LO 2 Effects of inventory error Assume that the ending inventory of a merchandising firm is overstated by $20,000. Required: a. By how much and in what direction (overstated or understated) will the firm's cost of goods sold be misstated? b. If this error is not corrected, what effect will it have on the subsequent period's operating income? c. If this error is not corrected, what effect will it have on the total operating income of the two periods...
Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? Net income is understated Net income is overstated Cost of merchandise sold is understated Merchandise inventory reported on the balance sheet is overstated
Understating the ending inventory balance has the following impact on the current year's income statement: U A Cost of goods sold is overstated and net income is understated. B) Cost of goods sold is understated and net income is understated. Cost of goods sold is overstated and net income is overstated. D Cost of goods sold is understated and net income is overstated. OE) Cost of goods sold is overstated and net income is correct.
Most questions answered within 3 hours.
-
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 1 hour ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 3 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 2 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 2 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 3 hours ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 3 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 3 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 3 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 4 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 4 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 5 hours ago