In the Following Questions, Inventory Errors Are Noted for 2009

question 96

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

- $$\begin{array} { | l | l | l | } \hline { \text { Error } } & \text { Cost of goods sold } & \text { Retained earnings } \\\hline \text { Unrecorded purchases } & & \\\hline\end{array}$$

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Definitions:

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.

Nursing Code

A set of ethical principles and standards that guide the professional conduct of nurses and nursing care.

Ethical Responsibility

A moral obligation to act correctly and make decisions that positively affect people and the environment, often referenced in professional contexts.

Competent Care

The provision of effective, appropriate, and skilled nursing or medical services to patients by healthcare professionals.