In the Following Questions, Inventory Errors Are Noted for 2018

question 97

Essay

In the following questions, inventory errors are noted for 2018. Assume that the errors are not discovered until 2019, 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:

Asperger's Syndrome

A disorder on the autism spectrum, characterized by significant difficulties in social interaction and nonverbal communication, alongside restricted and repetitive patterns of behavior and interests.

Cognitive Delays

Developmental lags where a child's cognitive abilities such as thinking, speech, and understanding develop slower than the typical rate for their age.

Autism

A developmental disorder characterized by challenges in social interaction, verbal and nonverbal communication, and repetitive behaviors.

Physical Neglect

The failure to provide necessary care, supervision, and protection for a dependent individual, leading to potential harm or health risks.