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

question 5

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 2013 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:

Electrical Events

Activities or processes in the body that involve the flow or movement of electrical charges, such as nerve impulses and muscle contractions.

Heart

A muscular organ in most animals, which pumps blood through the circulatory system by rhythmic contraction and dilation.

Brachial Artery

A major blood vessel of the upper arm that supplies blood to the arm and hand.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, typically measured in the arteries.