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

question 43

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)Beginning inventory is understated by $1,000.
• B)Gross margin is understated 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:

Workplace Aggression

Behaviors in a work setting that are intended to harm or coerce others, including verbal abuse, physical threats, or other forms of intimidation.

Extreme Verbal Abuse

A form of verbal communication that is damaging, using harsh and often derogatory language to demean or belittle others.

Violence Continuum

A concept used to describe the spectrum of behaviors that range from verbal abuse to physical violence.

Rage

Intense, uncontrolled anger that is often violent and can lead to irrational, aggressive behavior or emotional outbursts.