Ending Inventory for the Current Accounting Period Is Understated by $2,700

question 134

Multiple Choice

Ending 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:

National Income

The total value of all income earned within a country, including wages, rents, interest, and profits.

Flow Variable

A measure of something over an interval of time, such as your spending per week.

Point In Time

describes a specific moment or instance in the timeline.

Determined

A term describing a definite and firm decision or the resolution to follow a particular course of action.