Assuming That Ending Inventory for 2009 Was Overstated, Indicate Whether

question 99

Essay

Assuming that ending inventory for 2009 was overstated, 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:

5-card Hands

A combination of five cards usually dealt from a standard deck in card games, where different combinations have varying ranks.

Royal Flush

The highest possible hand in poker, consisting of the ace, king, queen, jack, and ten of the same suit.

Full House

In poker, a hand that contains three cards of one rank and two cards of another rank.

O-negative Blood

A blood type characterized by the lack of A, B, and Rh antigens on the surface of red blood cells, making it a universal donor type for blood transfusions.