If a Company Overstates Its Ending Inventory Balance for 2015

question 30

Short Answer

If a company overstates its ending inventory balance for 2015 by $10,000, and overstates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014?

Describe the structure and function of the nucleus and its role in cellular activities.

Understand the components and functions of the cytoskeleton.

Differentiate between endocytosis mechanisms (e.g., phagocytosis, pinocytosis, and receptor-mediated endocytosis).

Recognize factors that influence the rate of mediated transport (e.g., carrier molecules, concentration gradients).

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Definitions:

Plant Assets

Fixed, tangible assets used in the operation of a business, such as machinery, buildings, and equipment, that have a useful life of more than one year.

Land Improvements

Enhancements made to land, such as landscaping, driveways, fences, and sidewalks, that increase the property's value.

Subdivisions

In real estate, this refers to the act of dividing land into pieces that are easier to sell or otherwise develop.

Cash Discount

A reduction in the price paid for goods or services offered to customers as an incentive for early payment.