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

question 14

Essay

Assume that in Year 1,the ending merchandise inventory is overstated by $30,000.If this is the only error in Years 1 and 2,fill in the items below,indicating which items will be understated(U),overstated(O),or correctly(C)stated for Year 2.
$\begin{array}{ll}\text { Ending merchandise inventory } & \text { Year 2 \_\_\_ } \\\text { Beginning merchand ise inventory } & \text { Year 2\_\_\_ } \\\text { Cost of goods sold } & \text { Year 2 \_\_\_ } \\\text { Gross profit } & \text { Year 2 \_\_\_ } \\\text { Net income } & \text { Year 2 \_\_\_ } \\\text { Ending owner's capital } & \text { Year 2 \_\_\_ }\end{array}$

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Definitions:

Ontario Bird Count

An event or initiative focused on counting bird species and populations within the province of Ontario to track avian biodiversity and population trends.

Outliers

Data points that differ significantly from other observations, which can occur due to variability in the measurement or possibly indicate experimental error.

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Skewed

Refers to a distribution that is asymmetrical, with data points tending to be more spread out on one side of the mean than the other.