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

question 45

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 not have on fiscal 2020 financial reporting?

• A)Beginning inventory is understated by $1,000.
• B)Gross margin is overstated by $1,000.
• C)Cost of sales is understated by $1,000.
• D)Inventory is overstated on the balance sheet.

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Definitions:

Food

Substances consumed to provide nutritional support for an organism's body, essential for growth, energy, and maintaining life.

Cultural Practice

The routine activities and behaviors that are characteristic of a particular society or group of people.

Globalization

Globalization is the process of increased interconnectedness and interdependence among countries worldwide, characterized by the exchange of goods, services, information, and culture across international borders.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, contributing to a range of experiences, values, and worldviews.