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Korvikt [17]
4 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]4 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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Answer:

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Explanation:

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The pathways which are part of the Human Services career cluster include consumer services

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3 0
3 years ago
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Answer:

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Explanation:

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4 0
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Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in i
sineoko [7]

Answer:

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Explanation:

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PLEASE HELP ASAP! Will give BRAINLIEST! Please answer correctly!<br> No guessing!
drek231 [11]

Answer:

D

Explanation:

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8 0
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saw5 [17]

Answer:

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Explanation:

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