The Ending Merchandise Inventory for the Current Accounting Period Is

question 30

Multiple Choice

The ending Merchandise Inventory for the current accounting period is understated by $2,700. What effect will this error have on Cost of Goods Sold and Net Income?

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Definitions:

Ribonucleoside

A nucleoside consisting of a ribose sugar bonded to a nitrogenous base, a fundamental component of RNA.

Ribonucleotide

A nucleotide that contains ribose as its sugar component, which is a fundamental building block of RNA (ribonucleic acid).

Deoxyguanosine

A nucleoside component of DNA, consisting of the base guanine attached to a deoxyribose sugar, but lacking a phosphate group.

Guanosine

A nucleoside comprising guanine attached to a ribose (sugar) ring via a β-N9-glycosidic bond.