Assume That in Year 1,the Ending Merchandise Inventory Is Overstated

question 56

Essay

Assume that in Year 1,the ending merchandise inventory is overstated by $30,000.If this is the only error in Year 1,fill in the items below,indicating which items will be understated(U),overstated(O),or correctly(C)stated for Year 1.
$\begin{array}{ll}\text { Ending merchandise inventory } & \text { Year 1 \_\_\_ } \\\text { Beginning merchand ise inventory } & \text { Year 1\_\_\_ } \\\text { Cost of goods sold } & \text { Year 1 \_\_\_ } \\\text { Gross profit } & \text { Year 1 \_\_\_ } \\\text { Net income } & \text { Year 1 \_\_\_ } \\\text { Ending owner's capital } & \text { Year 1 \_\_\_ }\end{array}$

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Definitions:

Academic Self-concept

An individual's perception of their own academic abilities and potential.

Athletic Self-concept

An individual's perception of themselves in the context of athletic ability, physical fitness, and sports participation.

Conventional Stage

A phase in moral development where individuals' behavior is guided by conforming to the societal expectations and rules.

Moral Reasoning

The thought process involved in determining right from wrong and making ethical decisions.