Question

Q-Sear Document Mailings Review View Layout References One Page Ruler CMutiple Pages Oridines enus Leaming Zooms Zeom to 100% New Arange Window Spit Swihch Windows Macres Navigation Pane Page Wih Tools 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 Question 14 options Dighd Question 12 (1 point) Which of the following assets must be reported at the lower-of-cost A) The net inme will be nd d by $56000 or-market value Question 12 opiens The at inme will be etted by $600 A) Ao Roivable 9 Thet inewill be ndad by $28,000 Mnd D he t ine will be td by 528000 Question 15 (1 point) D Non B bl Which of the following is affected as a result of an eror in performing the physical ceunt of inventory at the end of the accounting period? Question 13 (1 point) Question 15 options When a company uses the perpetual inventory method, which of the following woud be the entry to adjust inventory to lower-of-cost-or Awm market i ngp Question 13 options Oconof A) fG d d Med M d yed od C rG Sl Question 16 (1 point) O Mn n y Ad nventory tumeer meassures aeL m d Ma d Question 16 options Question 14 (1 point) Al del y Egiot e tate MacBook Air % A & 5 6 7 E T Y D H J K V

Answer 1

12	Merchandise Inventory
13	Debit:-Cost of Goods sold
	Credit:Merchandise inventory
14	The overstatement of closing merchandise inventory for current year means that the
	following year's opening merchandise inventory is also overstated because of which
	the following year's net profit will be understated by $28,000
	So Option C
15	An error in the physical count will translate into valuation error when mutiplied by unit cost.
	Hence it will result into change in Net Income
	So Option D is answer
16	It shows how many time the company has sold replaced inventory
	So Option D
17	(Beginning Merchandise inventory + Closing Merchandise inventory) / 2
	So Option B it seems
18	Materiality concept states that accounting standards can be ignored if the net impact of doing so
	has a small impact on reader's of financila statements
	So Option A is answer means statndards are to be followed for significant items
19	Physical count of inventory
20	Option C is the correct entry
	Please upload a better picture next time, it is difficult to see from this picture