An understatement of the ending inventory in Year 1, if not corrected, will cause which of the following? Group of answer choices A)The year 1 net income to be understated and Year 2 net income will be unaffected. B)The year 1 net income to be overstated and Year 2 net income to be overstated. C)The year 1 net income to be overstated and Year 2 net income will be correct. d)The year 1 net income to be overstated and Year 2 net income to be understated. e)None of the above

Q: am.402.

A: The objective of the question is to understand the impact of understating ending inventory on the…

Q: If ending inventory is understaffed for year 1, then in year 2…. A. Costa of goods sold and gross…

A: Inventory is the term used in accounting which refers to the goods as well as materials that the…

Q: If ending inventory is understated in the current fiscal year, what effect will this have on net…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: inventory cOsting method but did not compare the cost of its ending inventory to its market value…

A: Last in first out (LIFO) which reflects the process of determining the inventory cost on the basis…

Q: Which of the following statements about the LIFO Reserve Disclosure is NOT true?  a. Usually, FIFO…

A: The credit balance in the LIFO reserve reports the difference since the time that LIFO was adopted.…

Q: A purchase on credit is recorded twice and not corrected during the year-end physical inventory.…

A: When goods are purchased on account i.e. on credit then in that case the purchase account is debited…

Q: a) Compare the periodic versus the perpetual system as a control device. b) What sort of…

A: The periodic and perpetual inventory Systems are two systems used to track the quantity of goods…

Q: If ending Inventory is overstated at the end of the year, profit will be: O Ovestated b) Understated…

A: Inventory valuation includes different methods that are used by companies to find out the value of…

Q: For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be…

A: Gain or loss is the amount of money earned or incurred. It is the amount which shows if the entity…

Q: The following are methods of how to calculate the valuation of ending inventory in accordance with…

A: GAAP: Generally Accepted Accounting Principles define various rules related to the accounting…

Q: What is the effect of a $40000 overstatement of last year's inventory on current years ending…

A: Retained earnings: Retained earnings are share holder funds. It is to be reported in Liabilities…

Q: Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable…

A:

Q: t is possible to calculate shrinkage Multiple Choice   a)in Periodic Inventory Accounting but not…

A: Inventory shrinkage is the additional amount of inventory in the accounting records in comparison to…

Q: True or False Prior years' financial statements are not restated when the prospective approach is…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A list of errors is shown below: Show the effects of the errors on the indicated balance sheet and…

A: solution The answer is presented in the table below

Q: What is the effect of a $51000 overstatement of last year's inventory on current years ending…

A: When there is overstatement of ending inventory occurs, the costs of goods sold (COGS) are stated…

Q: Which U.S. GAAP principle or rule would apply if the net realizable value of acompany’s inventory is…

A: Net realizable value: Net realizable value is the net amount of receivables which a business expects…

Q: If consignment inventory is unsold at the end of the period, who reports the ending inventory on the…

A: Consignment inventory is a property of consignor and the consignor will have all the rights with…

Q: nventory is unde this error in the c Goods Sold Net

A: The right  answer is  option b  Cost of goods sold is understated and Net Income is overstated

Q: If the ending inventory is overstated in the current year: Net income will be understated in the…

A: OVERSTATED OF ENDING INVENTORY   When Ending Inventory is Overstated, The Effect of Such Error on…