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

question 116

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 2019 financial reporting?

• A)Gross margin is overstated.
• B)Cost of sales is overstated by $1,000.
• C)Ending inventory is overstated by $1,000.
• D)Cost of goods available for sale is overstated by $1,000.

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