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

question 87

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)Cost of goods sold is understated by $1,000.
• B)Gross margin is overstated by $1,000.
• C)Ending inventory is understated by $1,000.
• D)Net income is overstated by $1,000.

Understand the basic principles of Freud’s psychoanalytic theory.

Identify the three levels of the mind according to Freud.

Differentiate between the id, ego, and superego.

Describe the role of the unconscious mind in human behavior and personality.