Rossiter Company Failed to Record a Credit Sale at the End

question 119

Multiple Choice

Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct?

• A) Accounts receivable was not affected, inventory was not affected, sales were understated, and cost of goods sold was understated.
• B) Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated.
• C) Accounts receivable was not affected, inventory was understated, sales were understated, and cost of goods sold was understated.
• D) Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was not affected.

Acknowledge the impact of personal values, culture, and beliefs on professional nursing practice.

Describe the role of competence and ongoing learning in nursing practice.

Understand the principles and applications of the International Council of Nurses Code of Ethics.

Identify the role of advocacy and responsibility in nursing.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.

Noncash Asset

Assets that cannot be easily converted into cash, such as buildings, equipment, and inventory.

Long-term Debt

Borrowings and financial obligations that are due to be repaid over a period longer than one year.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company.