A Company Using a Periodic Inventory System Neglected to Record

question 52

Multiple Choice

A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end.This merchandise was omitted from the year-end physical count.How will these errors affect inventory at year-end and cost of goods sold for the year? Cost of
Inventory Goods Sold

• A) No effect Understate
• B) Understate No effect
• C) Understate Understate
• D) No effect Overstate

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Definitions:

Modify

To make changes to something, often to improve it or to adapt it to new conditions.

Fill

The act of populating an area or object with a particular color, pattern, or texture in graphic design and software applications.

Ink Annotations

In digital documents or software, ink annotations are notes or drawings made directly on the document using a stylus or mouse, resembling handwriting or sketching on paper.

Pen

A device used for writing or drawing, traditionally using ink but also referring to a stylus used with electronic devices for input.