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

question 145

Multiple Choice

Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2019, but the inventory was excluded in error during the ending inventory count. What impact will this have on fiscal 2020 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.

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Definitions:

Lab Value

A quantitative result derived from a laboratory test, providing information about a patient's health status or condition.

Protein In Urine

The presence of abnormally high levels of protein in the urine, which may indicate kidney disease or other health issues.

Specific Gravity

A measure of the density of a substance compared to the density of water, indicating its concentration.

Reagent Strip

A diagnostic tool used to perform tests on bodily fluids through chemical reactions that indicate the presence of certain conditions or substances.