Use a "+" to Denote an Item Is Too High

question 18

Essay

Use a "+" to denote an item is too high as a result of an error, a "-" to denote too low, and a 0 to indicate no effect. What is the effect of each of the following errors on the financial statements of a company which uses the period inventory system?

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Definitions:

Pencil Sharpeners

Devices used to sharpen pencils by shaving away their worn surfaces.

Total Surplus

The combined benefit to all parties involved in a transaction, equal to the sum of consumer and producer surplus.

Dishwashers

Machines for cleaning dishes and utensils automatically.