Assume That a Purchase Invoice for $1,000 Was Appropriately Recorded

question 92

Multiple Choice

Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2016,but the inventory was excluded in error during the ending inventory count.What impact will this have on fiscal 2017 financial reporting?

• A)Gross margin is overstated by $1,000.
• B)Cost of sales is overstated by $1,000.
• C)Ending inventory is understated by $1,000.
• D)Beginning inventory is overstated by $1,000.

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Definitions:

Biological Approach

A perspective in psychology that emphasizes understanding behavior through focusing on brain structures, neurochemicals, and the influence of genetics.

Environmental Processes

The physical, chemical, and biological actions or events that influence the environment, often affecting ecosystems and human societies.

Psychological Processes

Mental activities including thinking, perceiving, feeling, and remembering, that underlie human behavior.

Biological Functioning

The processes and activities carried out by living organisms, including humans, which maintain life and contribute to growth, reproduction, and survival.