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:

Specific Behaviors

Concrete actions or reactions of individuals in certain situations, observed and measurable.

Non-Leaders

Individuals within an organization who are not in a designated leadership or management role.

Blake Mouton Grid

A managerial grid model that identifies five leadership styles based on the concern for people and the concern for production.

Concern For Production

The focus on optimizing and maximizing the output and efficiency of production processes within an organization.