Answered: 11. What is the effect on cost of goods…

11. What is the effect on cost of goods sold, gross profit, and net income if ending mer- chandise inventory is understated? 12. When does an inventory error cancel out, and why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Answer questions 11. And 12.

dise inventory under the LCM rule?
11. What is the effect on cost of goods sold, gross profit, and net income if ending mer-
chandise inventory is understated?
12. When does an inventory error cancel out, and why?
13
How is inventory turn over calculated and what does it meegure)

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