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

question 140

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)No effect on beginning inventory.

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Definitions:

Craft Lines

Distinctions made within a trade or profession, often based on specialized skills or functions, leading to the organization and representation of labor accordingly.

National Employment Issues

Challenges, concerns, or problems related to employment that affect a nation as a whole.

Psychological Needs

Fundamental human necessities related to mental well-being, such as feeling valued, belonging, autonomy, and competence.

Knights of Labor

The Knights of Labor was a significant labor organization in the United States in the late 19th century, advocating for broad social and economic reforms, including the eight-hour workday.