An Accounting Clerk Working for DBB Neglected to Record the Purchase

question 125

Multiple Choice

An accounting clerk working for DBB neglected to record the purchase of merchandise in 20x1,which was,shipped f.o.b.shipping point on December 20,20x1,and which arrived on December 31.The goods were included in the ending 20x1 inventory.What was the effect on DBB's 20x1 cost of goods sold?

• A) Cost of goods sold was correct.
• B) Cost of goods sold was understated.
• C) Cost of goods sold was overstated.
• D) Data are not available to determine effect on cost of goods sold.

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Definitions:

Training Initiatives

Programs or projects undertaken by organizations to develop the skills and competencies of their employees, often with specific objectives and outcomes in mind.

Organizational Strategy

A planned course of action designed to achieve the long-term goals and objectives of an organization.

Negative Consequences

Undesirable outcomes that result from an action or lack thereof.

Needs Analysis Process

A systematic approach to identifying and assessing the training requirements of an organization or individuals.