An Error in the Physical Count of Goods on Hand

question 2

Multiple Choice

An error in the physical count of goods on hand at the end of the current period resulted in a $2,500 overstatement of the ending inventory. The effect of this error in the current period is to:

• A) overstate cost of goods sold.
• B) understate cost of goods available for sale.
• C) understate gross profit.
• D) overstate net income.

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Definitions:

Expired Administrative Supplies

Office or medical supplies that are no longer usable or effective because they have passed their expiration date.

Store Chemicals

The process or facility for safely keeping and managing chemicals, ensuring they are preserved correctly and pose no risks.

Store Narcotics

Safely securing opiate drugs to prevent misuse or theft, often in accordance with legal and professional guidelines.

Strong Acids

Highly corrosive acids that completely dissociate in water, characterized by a high hydrogen ion concentration.