Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will this error affect net income for 2018? O Net income will be understated by $30,000. O Net income will be understated by $15,000. O Net income will be overstated by $15,000. O Net income will be overstated by $30,000. O The understatement of inventory in 2017 will not affect income in 2018.

Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will this error affect net income for 2018? O Net income will be understated by $30,000. O Net income will be understated by $15,000. O Net income will be overstated by $15,000. O Net income will be overstated by $30,000. O The understatement of inventory in 2017 will not affect income in 2018.

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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The World Company's financial statements for 2019 and 2020 contain the following errors: 2020 2019 ending inventory $6,000 overstated $16,000 overstated insurance expense $4,000 understated $12,000 overstated If World Company uses the periodic inventory system and the proper correcting entries were made For other accounts, how much will 2020 operating income be overstated or understated? O $10,000 understated O $6,000 overstated O $10,000 overstated $6,000 understated
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It is discovered in 2018 that ending inventory in 2016 was understated. What is the effect of the understatementon the following: 2016: Cost of goods soldNet incomeEnding retained earnings2017: Net purchasesCost of goods soldNet incomeEnding retained earnings
Bonita Company understated its 2022 ending inventory by $30,100. Determine the impact this error has on ending inventory, cost of goods sold, and owner’s equity in 2022 and 2023. 2022 2023 Ending inventory select an effect OverstatedNo EffectUnderstated select an effect UnderstatedOverstatedNo Effect Cost of goods sold select an effect OverstatedNo EffectUnderstated select an effect OverstatedUnderstatedNo Effect Owner’s equity select an effect No EffectOverstatedUnderstated select an effect UnderstatedOverstatedNo Effect
On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $77500, it is now January 8, 2024, and you have been asked to double-check the year-end inventory listing. J&M uses a perpetual inventory system Note: Only relevant items are shown on the inventory listing. # 1 2 Jen & Mink Clothing Inventory Listing December 31, 2023 Inventory Number Inventory Description Quantity (units) Blue jackets. Black pants 7649 10824 104 308 Unit Cost ($) Total Value ($) 24 2,496 5,852 19 Total Inventory $77,500 The following situations have been brought to your attention: a. On January 3, 2024, J&M received a shipment of 104 blue jackets, for $2,496 (Item #7649). The inventory was purchased December 23, 2023, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing. b. On December 29, 2023, J&M sold scarves (Item # 5566) to a customer with a sale price of $740 and cost of…
On December 31, 2018, Inventory for Company X was $30,000. On December 31, 2019 the Inventory amount was $15,000. During 2019, the change in Inventory represented: A $15,000 Operating Outflow. A $15,000 Operating Inflow. A $45,000 Operating Inflow. A $45,000 Operating Outflow.
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(S) porins) An audit of Antwren revealed four errors that were made but never corrected. In 2021, ending inventory was overstated by $201, 000 and depreciation was overstated by $44,000. In 2022, nding inventory was understated by $111, 000 and wages expens as understated by $86, 000. What effect did these errors have 0 htwren's 2022 net income? (RE&CF 6) understated by $226, 000 overstated by $132, 000 pverstated by $157,000 inderstated by $25,000
I could use some help with homework can you explain how to do this? A mistake was made when counting the ending inventory at December 31, 2018: it was recorded incorrectly as $50,000 (not the correct $60,000). Ending inventory for 2019 was recorded correctly. The effect of this error on the firm's income would be: Group of answer choices -2018 income would be overstated by $10,000. -2018 and 2019 income would be understated by $10,000 for each year. -2018 income would be correct but 2019 would be overstated. -2018 income would be understated by $10,000 and 2019 income would be overstated by $10,000, the errors cancel each other out after 2 years. -None of the above.