Assuming That Ending Inventory for 2009 Was Understated, Indicate Whether

question 40

Essay

Assuming that ending inventory for 2009 was understated, indicate whether each of the following will be understated (U), overstated (O), or not affected (N).
_____ 1. Beginning inventory for 2010
_____ 2. Cost of goods sold for 2009
_____ 3. Stockholders' equity at the end of 2010
_____ 4. Income before income taxes for 2010
_____ 5. Stockholders' equity at the end of 2009
_____ 6. Cost of goods sold for 2010
_____ 7. Income before income taxes for 2009

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Definitions:

Underground Style

Typically refers to a subversive or non-mainstream fashion or trend, often associated with music, art, or cultural movements.

Colin Powell

An American military general and statesman who served as the first African American U.S. Secretary of State, known for his leadership during the Persian Gulf War.

Condoleezza Rice

An American political scientist and diplomat who served as the 66th United States Secretary of State, and was the first African American woman to hold the post.

Secretary of State

A senior official in the federal government responsible for conducting foreign affairs and diplomacy.