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

question 82

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 2016 financial reporting?

• A)Beginning inventory is understated by $1,000.
• B)Gross margin is understated by $1,000.
• C)Cost of sales is understated by $1,000.
• D)Inventory is overstated on the balance sheet.

---

Definitions:

Global Brand

A brand that is recognized and has a consistent presence across multiple countries worldwide, known for delivering universally appealing products or services.

Manufacturer-owned Brands

These are brands that are owned and managed by the manufacturers themselves, allowing for direct control over product quality and marketing strategies.

Brand Positioning

The strategy of creating a unique impression in the customer's mind so that the customer associates something specific and desirable with your brand that is distinct from rest of the marketplace.

Western-sounding Brand Names

Brand names that are designed to evoke Western (particularly American or European) culture or values, often used to appeal to global markets.