If the ending inventory is overstated by $10,000, which statement is true?a. Assets and Cost of Goods Sold are overstated.b. Assets and Cost of Goods Sold are understated.c. Assets and Net Income are overstated.d. Assets and Net Income are understated.

The correct answer is:c. Assets and Net Income are overstated. Explanation:Ending Inventory…

Answered: If the ending inventory is overstated…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1CE: LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about...

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Which of these statements is false? A. If cost of goods sold is incorrect, ending inventory is usually incorrect too. B. C. D.
Assuming a companys year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: Equity
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4. Cost of goods sold is equal to a. total goods available for sale minus ending inventory. b. total goods available for sale plus beginning inventory . c. sum of ending inventory and cost of inventory charged to expense minus net purchases. d. net purchases minus ending inventory .
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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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If the ending inventory is overstated by $10,000, which statement is true? a. Assets and Cost of Goods Sold are overstated. b. Assets and Cost of Goods Sold are understated. c. Assets and Net Income are overstated. d. Assets and Net Income are understated.