If, at the End of a Period, a Company Erroneously

question 70

Multiple Choice

If, at the end of a period, a company erroneously excluded some goods from its ending inventory and also erroneously did not record the purchase of these goods in its accounting records, these errors would cause

• A) the ending inventory and retained earnings to be understated.
• B) the ending inventory, cost of goods sold, and retained earnings to be understated.
• C) no effect on net income, working capital, and retained earnings.
• D) cost of goods sold and net income to be understated.

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Previously a socialist federation located in Eastern Europe and Northern Asia, the Union of Soviet Socialist Republics (USSR) operated from 1922 until its dissolution in 1991.