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

question 103

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 understated by $1,000.
• B)Cost of sales is overstated by $1,000.
• C)Ending inventory is not affected by the prior year inventory counting error.
• D)Beginning inventory is overstated by $1,000.

---

Definitions:

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Priority Nursing Intervention

Essential actions undertaken by nurses to address the most immediate needs of the patient, ensuring safety and promoting optimal health outcomes.

Mental Health Evaluation

A clinical assessment procedure used to determine the presence, nature, and extent of a person's mental health issues.

Emergency Department

A specialized department in a hospital that provides immediate treatment for acute illnesses and trauma.