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

question 35

Multiple Choice

Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2012, but the inventory was excluded in error during the ending inventory count. What impact will this have on fiscal 2012 financial reporting?

• A)Gross margin is overstated.
• B)Cost of sales is overstated by $1,000.
• C)Ending inventory is overstated by $1,000.
• D)Cost of goods available for sale is overstated by $1,000.

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Definitions:

Birth Process

The series of events and stages that lead to the delivery of a baby, from the onset of labor to the delivery.

Second Trimester

The period in pregnancy from the 13th to the 26th week, marked by significant growth and development of the fetus.

Fetal Activity Level

The measure of movement and general activity of a fetus inside the womb, which can be an indicator of health and vitality.

Ounces

A unit of weight in the avoirdupois, Troy, and apothecaries' systems, equivalent to 1/16 of a pound.