6. When the current year's ending inventory amount is overstated, the a. current year's cost of goods sold is overstated. b. current year's total assets are understated. c. current year's net income is overstated. d. next year's income is overstated. 7. Which of the following statements about manufacturing cost flows is falee a. Direct materials, direct labor, and manufacturing overhead are entered in the Work-in-Process Inventory account. b. The Finished-Goods Inventory account will contain entries that refleet the cost of goods sold during the period. c. The cost of units sold during the period will typically appear on the income statement. d. When a company sells goods that cost P54,000 for P60,000, the firm will enter P6,000 in an account entitled Profit on Sale.
6. When the current year's ending inventory amount is overstated, the a. current year's cost of goods sold is overstated. b. current year's total assets are understated. c. current year's net income is overstated. d. next year's income is overstated. 7. Which of the following statements about manufacturing cost flows is falee a. Direct materials, direct labor, and manufacturing overhead are entered in the Work-in-Process Inventory account. b. The Finished-Goods Inventory account will contain entries that refleet the cost of goods sold during the period. c. The cost of units sold during the period will typically appear on the income statement. d. When a company sells goods that cost P54,000 for P60,000, the firm will enter P6,000 in an account entitled Profit on Sale.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:6. When the current year's ending inventory amount is overstated, the
current year's cost of goods sold is overstated.
b. current year's total assets are understated.
c. current year's net income is overstated.
d. next year's income is overstated.
a.
7. Which of the following statements about manufacturing cost flows is falees
a. Direct materials, direct labor, and manufacturing overhead are entered
in the Work-in-Process Inventory account.
b. The Finished-Goods Inventory account will contain entries that refleet
the cost of goods sold during the period.
c. The cost of units sold during the period will typically appear on the
income statement.
d. When a company sells goods that cost P54,000 for P60,000, the firm will
enter P6,000 in an account entitled Profit on Sale.
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