Tang, Inc Sells Collectible Jewelry on Consignment from Various Manufacturers

question 13

Multiple Choice

Tang, Inc. sells collectible jewelry on consignment from various manufacturers. Additionally, Tang sells its own line of specialty jewelry manufactured in-house. On December 31, 2019, during Tang, Inc 's annual inventory count, an inexperienced new staff member included in Tang's ending inventory €350,000 worth of inventory held on consignment from Metcalf Associates. Which of the following is correct regarding the impact of this error on Tang's income statement and statement of financial position at December 31, 2019?

• A) Ending inventory is understated by €350,000.
• B) Retained earnings is overstated by €350,000.
• C) Cost of goods sold is overstated by €350,000.
• D) The financial statements are correctly stated.

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Definitions:

Gene Flow

The transfer of genetic material between different populations, leading to genetic diversity within a species.

Fertile Individuals

Persons or organisms that are capable of reproducing and contributing genetic material to the next generation.

Mexico and Canada

Two countries located in North America, with Mexico in the south and Canada in the north, both sharing borders with the United States.

Genetic Drift

A random change in allele frequency in a small breeding population.