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

question 19

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 goods available for sale is understated by $1,000.
• C)Cost of sales is overstated by $1,000.
• D)Beginning inventory is overstated by $1,000.

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Definitions:

Full Development

The achievement of the maximum potential or capacities in any aspect of human growth, whether physical, emotional, or intellectual.

Cognitive Needs

Mental requirements or desires that individuals have for understanding, exploring, and making sense of their environment and experiences.

Emotionally Healthy Adults

Individuals who exhibit stable and positive psychological conditions, with the ability to manage emotions, form healthy relationships, and cope with life's challenges effectively.

Safety and Security

Fundamental needs in Maslow's hierarchy, representing the necessity for protection from physical harm and assurance of psychological well-being.