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KiRa [710]
3 years ago
14

Aaron Company uses the periodic inventory cost flow method. If Aaron's ending inventory is understated due to an accounting erro

r, what is the effect on net income and the ending balance of retained earnings?
Net Income Retained Earnings
(A) Understated Understated
(B) Understated Overstated
(C) Overstated Understated
(D) Overstated Overstated
Business
1 answer:
stira [4]3 years ago
8 0

Answer:

(A) Understated Understated

Explanation:

If there is an error in presentation of ending inventory and the value is understated, it will understate the net income as gross profit will be understated.

Further net income is part of retained earnings, and therefore, it will also be understated.

Since in a T shape income statement, Closing stock is presented on the right side that means credited and added as an income.

Thus, if understated the income will also be understated.

Thus, correct option is:

(A) Understated Understated

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Which of the following items is not a product cost?
sineoko [7]

Answer:

d. Transportation cost on goods delivered to customers.

Explanation:

Product cost is defined as the cost a business bears as a result of producing a product. This includes labor, cost of supplies, factory overhead costs, and cost of transporting supplies.

The cost of transporting product to the consumer is logistics cost.

8 0
2 years ago
All of the following would be considered closing costs except for: a) A title search b) Cost of repainting the kitchen before mo
otez555 [7]
B/ <span>Cost of repainting the kitchen before moving in</span>
5 0
3 years ago
A heavy snowstorm is predicted to occur in Boston on the same night as the city’s professional basketball team is playing a game
Jlenok [28]

Answer:

2

Explanation:

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

If the price of the ticket is reduced, the quantity demanded would increase

If on the other hand, prices are increased, the quantity demanded would reduce.

3 0
2 years ago
Consider a game with two players who cannot​ communicate, and in which each player is asked a question. The players can either a
AveGali [126]

Answer:

Each player can adopt a T for T strategy or a trigg er strategy. It is important to state that these strategies were not possible in a one-time game.

The equilibrium is that both players answer honest and each makes normal profit.

Both games, the P risoners' dilemma and this game, have a cooperative equilibrium in the long term. If a player employs a trig ger strategy or a T for T strategy, they can reach the cooperative honesty/honesty outcome.

In a short term, game equilibrium is not likely due to lying is more profitable than answer honestly deploying stated strategies.

Reference: NomCab HSEONE.  “PS8- solution.” Academia , 2019.

6 0
2 years ago
For the year ended December 31, Ion Corp. had cash inflows of $25,000 from the purchases, sales, and maturities of held-to-matur
77julia77 [94]

Answer:

The amount of net cash flow from investing activities that ion should report in its cash flow statement is $65,000.

Explanation:

A cash flow statement is one of the financial statements which will tell how changes in income statement and balance sheet accounts will affect the company's cash inflow and outflow. This statement will break down the analysis in to operating , investing and financing activities.

For taking out the net cash flow in investing activities, purchase activities are added and sale activities are subtracted and from the given information in the question , it is clear that both are purchasing activities, therefore

NET CASH FLOW FROM INVESTING = $25,000 + $40,000

                                                              = $65,000

5 0
2 years ago
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