At the end of 2022, a $13,000 overstatement was discovered in the 2022 ending inventory as reflected in the inventory records. What were the effects of the $13,000 inventory error (before correction) on the year 2022 financial statements? Multiple Choice Assets were understated by $13,000 and pretax income was overstated by $13,000. Cost of goods sold was understated by $13,000 and pretax income was understated by $13,000. Cost of goods sold was overstated by $13,000 and pretax income was overstated by $13,000. Assets were overstated by $13,000 and pretax income was overstated by $13,000.
At the end of 2022, a $13,000 overstatement was discovered in the 2022 ending inventory as reflected in the inventory records. What were the effects of the $13,000 inventory error (before correction) on the year 2022 financial statements? Multiple Choice Assets were understated by $13,000 and pretax income was overstated by $13,000. Cost of goods sold was understated by $13,000 and pretax income was understated by $13,000. Cost of goods sold was overstated by $13,000 and pretax income was overstated by $13,000. Assets were overstated by $13,000 and pretax income was overstated by $13,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:At the end of 2022, a $13,000 overstatement was discovered in the 2022 ending inventory as
reflected in the inventory records. What were the effects of the $13,000 inventory error (before
correction) on the year 2022 financial statements?
Multiple Choice
Assets were understated by $13,000 and pretax income was overstated by
$13,000.
Cost of goods sold was understated by $13,000 and pretax income was
understated by $13,000.
Cost of goods sold was overstated by $13,000 and pretax income was overstated
by $13,000.
Assets were overstated by $13,000 and pretax income was overstated by
$13,000.
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