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In the Following Questions, Inventory Errors Are Noted for 2009

question 30

Essay

In the following questions, inventory errors are noted for 2009. Assume that the errors are not discovered until 2010, and that the company uses a periodic inventory system. Indicate the effect of the error, if any, on the accounts noted in the columns, using the following code:
U = understated; O = Overstated; NE = No effect

-  Error  Cost of goods sold  Retained earnings  Understated beginning inventory \begin{array} { | c | c | c | } \hline \text { Error } & \text { Cost of goods sold } & \text { Retained earnings } \\\hline \text { Understated beginning inventory } & & \\\hline\end{array}


Definitions:

Epigenetics

The study of heritable changes in gene expression that do not involve changes to the underlying DNA sequence.

Nature and Nurture

The debate regarding the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Genes and Chromosomes

Elements of heredity with genes being the molecular units of inheritance on chromosomes, which are long strands of DNA containing a sequence of genes.

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