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

question 92

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 2020 financial reporting?

• A)Gross margin is overstated by $1,000.
• B)Cost of sales is overstated by $1,000.
• C)Ending inventory is understated by $1,000.
• D)No effect on beginning inventory.

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Definitions:

Morbidity and Mortality

Terms referring to the incidence rate of disease (morbidity) and the rate of death (mortality) within a population, indicators often used in public health.

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Statistical data relating to the population and particular groups within it, covering factors like age, gender, income, and ethnicity.

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