Homework Answers
The correct answer is option a. Net income is understated
If merchandise inventory was understated, then the cost of merchandise sold is overstated and hence the net income is understated.
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Merchandise inventory at the end of the year was understated. Which of the following statements correctly...
#3 and #4 1 pts Question 3 Merchandise inventory at the end of the year was inadvertently overstated. Which of the f...
#3 and #4
1 pts Question 3 Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on gross profit? gross profit is overstated no effect on gross profit not enough information to know gross profit is understated D Question 4 0.8 pts A company using the periodic system counted 700 units on hand at year-end. The following purchases were make during the first year of operations:...
Effect of Errors in Physical Inventory Fonda Motorcyde Shop sells motorcydes, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcyde Shop sells motorcydes, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20YB, Fonda Motorcycle Shop incorrectly counted its inventory as $431,390 instead of the correct amount of $414,130. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop Balance Sheet Items Overstated/Understated Amount Merchandise Inventory Current Assets Total Assets...
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.
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted its inventory as $229,310 instead of the correct amount of $220,140. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated/Understated Amount Merchandise Inventory $ Current Assets Total...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted its inventory as $242,240 instead of the correct amount of $232,550. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated/Understated Amount Merchandise Inventory $ Current Assets Total...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted its inventory as $405,610 instead of the correct amount of $389,390. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated/Understated Amount Merchandise Inventory $ Current Assets Total...
At the beginning of Year 1, the company’s inventory level was stated correctly. At the end...
At the beginning of Year 1, the company’s inventory level was stated correctly. At the end of Year 1, inventory was understated by $2,000. At the end of Year 2, inventory was overstated by $450. Reported net income was $3,000 in Year 1 and $3,000 in Year 2. The correct amount of net income in Year 2 is
Which statement below correctly explains what merchandise Inventory is?
Which statement below correctly explains what merchandise Inventory is? Merchandise inventory is subtracted from net sales on the income statement to determine gross profit for the period. Merchandise inventory is increased when products are sold to customers. Merchandise inventory is an expense account reported on the income statement and contains the cost of products purchased for sale Merchandise inventory is an asset reported on the balance sheet and contains the cost of products purchased for sale
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...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted its inventory as $324,140 instead of the correct amount of $311,170. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated/Understated Amount Merchandise Inventory Current Assets Total Assets...
#3 and #4
1 pts Question 3 Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on gross profit? gross profit is overstated no effect on gross profit not enough information to know gross profit is understated D Question 4 0.8 pts A company using the periodic system counted 700 units on hand at year-end. The following purchases were make during the first year of operations:...
Effect of Errors in Physical Inventory Fonda Motorcyde Shop sells motorcydes, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20YB, Fonda Motorcycle Shop incorrectly counted its inventory as $431,390 instead of the correct amount of $414,130. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop Balance Sheet Items Overstated/Understated Amount Merchandise Inventory Current Assets Total Assets...
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.
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted its inventory as $324,140 instead of the correct amount of $311,170. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated/Understated Amount Merchandise Inventory Current Assets Total Assets...
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