A Explain the Effect of the Following on the Financial

question 32

Essay

a. Explain the effect of the following on the financial statements:
Goods held on consignment were included in the ending inventory count.
Goods purchased FOB shipping point were in transit on the last day of the year. The goods were not counted as part of ending inventory.
Goods sold FOB shipping point were in transit on the last day of the year. These goods were not counted as part of ending inventory.
b. What happens if inventory errors are not found and corrected?

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Definitions:

Internodes

Sections of a plant stem or branch occurring between two successive nodes, which are the points on a stem where leaves or branches originate.

Secondary Growth

Refers to the growth process in plants that results in increased thickness of stems and roots, typically seen in woody plants.

Woody Plants

Plants that produce wood as their structural tissue and typically have perennial growth, such as trees and shrubs.

Meristem Tissues

Regions in plants comprised of undifferentiated cells capable of division and growth, responsible for the plant's growth in length and girth.