Assume That a $500 Purchase Invoice Received Close to Year-End

question 17

Multiple Choice

Assume that a $500 purchase invoice received close to year-end is not recorded in fiscal 2019, but the inventory is appropriately included in the ending inventory count. What impact will this have on fiscal 2020 financial reporting?

• A)Cost of sales is understated by $500.
• B)Gross margin is understated.
• C)Operating expenses are overstated by $500.
• D)Operating profit is overstated by $500.

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Definitions:

Leadership Competencies

A set of skills, knowledge, and personal traits that contribute to an individual's ability to lead others effectively.

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The inherent capacity or qualities an individual possesses that may predict their success in leadership roles and responsibilities.

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The effectiveness with which a leader guides, motivates, and influences their team towards achieving goals.

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A concept emphasizing shared leadership within an organization, encouraging members at all levels to take initiative and participate in decision-making processes.