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

question 69

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 not have on fiscal 2013 financial reporting?

• A)Beginning inventory is understated by $1,000.
• B)Gross margin is understated by $1,000.
• C)Cost of sales is overstated by $1,000.
• D)Inventory is overstated on the balance sheet.

Apply knowledge of internal control principles to identify weaknesses in control systems.

Calculate and assess the financial metrics related to cash management, such as days' sales uncollected.

Understand the procedures and documentation involved in cash disbursements and the role of vouchers in the accounting process.

Understand how to create and modify fields in a database, including multivalued and lookup fields.

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Definitions:

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