Homework Answers
All of the other answers are correct.
when the ending inventory is overstated, the Total assets will also be overstated because Inventory is also a part of Total assets in balance sheet.
Total expense will get understated when the closing inventory is overstated as the cost of goods sold is calculated by the formula - Opening inventory + Puchases - Closing inventory. when closing stock gets overstated, the cost of goods sold will be understated and it will results in understating the total expenses.
Retained earnings will be overstates as the total expense gets understated.
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If ending inventory in 20x1 is overstated, which of the following is true? Multiple Choice Total...
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...
E17.2 Quirk Hospital made inventory errors as follows: O · December 31, 20X1 inventory overstated by...
E17.2 Quirk Hospital made inventory errors as follows: O · December 31, 20X1 inventory overstated by $400 • December 31, 20X1 inventory understated by $100 (1) By what amount was the hospital's 20X2 excess of revenues over expenses overstated or understated due to these errors? (2) By what amount were the hospital's net assets (fund balance) overstated or understated at December 31, 20X2 due to these errors?
Under the periodic Inventory method, If ending Inventory is understated, then assets will be overstated True...
Under the periodic Inventory method, If ending Inventory is understated, then assets will be overstated True or False True False
If the ending inventory on December 31, 2011, is overstated by $6,000, which of the following...
If the ending inventory on December 31, 2011, is overstated by $6,000, which of the following would result? O Net income for 2012 would be overstated O Cost of goods sold for 2011 would be understated O Net income for 2011 would be understated O Expenses for 2012 would be understated,
If the beginning inventory is overstated, which one of the following is incorrect? (Assume the error...
If the beginning inventory is overstated, which one of the following is incorrect? (Assume the error in the beginning inventory is a clerical error and previous accounting records are free of errors) Select one: a. working capital at the year end is correctly stated. b. the current ratio at the year end is overstated. c. retained earnings is understated. d. cost of goods sold is overstated
11. If the ending inventory is overstated on a balance sheet, which of the following items...
11. If the ending inventory is overstated on a balance sheet, which of the following items will also be misstated on the balance sheet? A. Total long-term assets B. Total current assets C. Cost of goods sold D. Cash
If the beginning inventory is overstated: 1.the current ratio is overstated. 2.cost of goods sold is...
If the beginning inventory is overstated: 1.the current ratio is overstated. 2.cost of goods sold is understated 3.retained earnings is understated. 4.working capital is understated. Wavy Inc. is a calendar-year corporation. Its financial statements for the years 2017 and 2016 contained errors as follows: 2017 2016 Ending Inventory $9,000 overstated $18,000 overstated Depreciation Expense $6,000 understated $13,500 overstated Assume that the proper correcting entries were made at December 31, 2016. By how much will 2017 income before taxes be overstated...
Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease...
Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease liabilities. Revenue decreases owners’ equity and expenses increase owners’ equity. Revenue increases owners’ equity and expenses decrease owners’ equity. Revenue decreases owners’ equity and increases liabilities. Which of the following statements is not true regarding the adoption of ASC Topic 606 guidance for revenue recognition? Multiple Choice When using the cumulative approach, the prior three years of financial statements need to be restated. Under...
Which of the following statements are true? Multiple Choice If the trial balance is in balance,...
Which of the following statements are true? Multiple Choice If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions The trial balance is a book of original entry. The trial balance is another name for the balance sheet as long as debits balance with credits. Another name for trial balance is chart of accounts. The trial balance is a list of all accounts from the ledger with their balances 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.
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...
E17.2 Quirk Hospital made inventory errors as follows: O · December 31, 20X1 inventory overstated by $400 • December 31, 20X1 inventory understated by $100 (1) By what amount was the hospital's 20X2 excess of revenues over expenses overstated or understated due to these errors? (2) By what amount were the hospital's net assets (fund balance) overstated or understated at December 31, 20X2 due to these errors?
Under the periodic Inventory method, If ending Inventory is understated, then assets will be overstated True or False True False
If the ending inventory on December 31, 2011, is overstated by $6,000, which of the following would result? O Net income for 2012 would be overstated O Cost of goods sold for 2011 would be understated O Net income for 2011 would be understated O Expenses for 2012 would be understated,
If the beginning inventory is overstated, which one of the following is incorrect? (Assume the error in the beginning inventory is a clerical error and previous accounting records are free of errors) Select one: a. working capital at the year end is correctly stated. b. the current ratio at the year end is overstated. c. retained earnings is understated. d. cost of goods sold is overstated
11. If the ending inventory is overstated on a balance sheet, which of the following items will also be misstated on the balance sheet? A. Total long-term assets B. Total current assets C. Cost of goods sold D. Cash
Which of the following statements are true? Multiple Choice If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions The trial balance is a book of original entry. The trial balance is another name for the balance sheet as long as debits balance with credits. Another name for trial balance is chart of accounts. The trial balance is a list of all accounts from the ledger with their balances at...
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.
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