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

question 89

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 understated on the balance sheet.

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Definitions:

High Self-efficacy

The belief in one's own ability to successfully accomplish tasks and challenges.

Particular Task

A specific or distinct activity or assignment that needs to be accomplished within a set of defined parameters or objectives.

Internal Motivator

Intrinsic factors within an individual that drive them to act or accomplish tasks, such as personal satisfaction or the joy of doing something.

Being Proud

The feeling of satisfaction and pleasure derived from one's accomplishments, qualities, or possessions.