Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will thiserror affect net income for 2018?Net income will be understated by $30,000.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.

If the ending inventory of one year is overstated then the net income will be overstated of the…

Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will this error affect net income for 2018? 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. 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? 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. 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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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
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If beginning inventory is understated by $11800, the effect of this error in the current period is Cost of Goods Sold Net Income Net Income overstated understated understated overstated understated understated overstated overstated
Errors in Inventory Count Bow Corp. accidentally overstated its 2015 ending inventory by $750. Assume that ending 2016 inventory is accurately counted. The error in 2015 will have what effect on Bow Corp.? Oa. 2015 net income is understated by $750 Ob. 2015 net income is overstated by $750. Oc, 2016 net income is understated by $750. Od. Both b and c are correct.
If the ending inventory is overstated in the current year: Net income will be understated in the current year. Next year's beginning inventory will also be overstated. Next year's net income will be overstated. Next year's beginning inventory will be understated.
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.
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If Wakowski Company's ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any? If no entry is required, select "None" and leave the amount boxes blank. Balance Sheet: Merchandise Inventory $4 Current Assets Total Assets Retained Earnings Income Statement: Cost of Goods Sold Gross Profit/Gross Margin Net Income
1. If ending inventory on December 31, 2019, is overstated, then, a) cost of goods sold for the year ended December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31, 2020, will be understated. d) cost of goods sold for the year ended December 31, 2019, will be overstated.
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