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Korvikt [17]
3 years ago
11

Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income

. Explain the consequences of this error on the current period's income statement.A. Cost of goods sold will be too high by $5,000.
B. Cost of goods sold will be too low by $5,000.
C. The correct net income amount should have been $105,000.
Business
1 answer:
soldi70 [24.7K]3 years ago
4 0

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Overstatement in closing inventory has two effects. First in income statement, that the cost of goods sold is decreased by the same amount that is overstated. Second is overstatement of Inventory value in the asset section of balance sheet. According to the given scenario The effect of this event should be as cost of goods sold will be too low by $5,000.

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k0ka [10]

Answer:

False

Explanation:

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4 0
3 years ago
The statement of owner's equity: Multiple Choice
QveST [7]

Answer:

E. Reports how equity changes over a period of time.

Explanation:

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3 years ago
When megan purchased several bottles of pepsi beverages and snacks to bring to her family's holiday celebration, it represented
den301095 [7]
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3 years ago
Parker is a sales representative for Kashi. Each week he uploads his plans for visiting clients out in the field to a routing an
Montano1993 [528]

Available options:

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B. use existing transportation facilities.

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D. determine duration of sales calls.

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Answer:

Option C. Minimizing non-selling time.

Explanation:

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4 0
3 years ago
Assume Dell's yearly inventory cost is 30 percent to account for the cost of capital for financing the inventory, the warehouse
JulijaS [17]

Answer:

See below

Explanation

1. Value of inventory sold

= $280 million in inventory + COGS $23,100 million

= $303,100 million

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= $23,100 million / $151,550

=

5 0
3 years ago
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