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yawa3891 [41]
2 years ago
13

A company uses the periodic inventory method. If beginning inventory is understated by $10,000 because the prior’s year’s ending

inventory was understated by $10,000. The company’s ending inventory for this period is correct. The effect of this error in the current period is that (i) cost of goods sold is ___________ and (ii) net income is __________.a. (i) Overstated and (ii) Overstatedb. (i) Understated and (ii) Understatedc. (i) Overstated and (ii) Understatedd. None of thesee. (i) Understated and (ii) Overstated
Business
1 answer:
Ratling [72]2 years ago
3 0

Answer: Understated and Overstated

Explanation:

Cost of good sold is the addition of Opening stock to the purchases and subtracting closing stock, the omission of $10,000 will reduce it. Invariably a reduction in cost of sales will overstate income.

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A calendar year corp. has substantial accumulated E&P, but it expects to incur a deficit in current E&P for the year due
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The statement is inaccurate.

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The ______ is a government-sponsored enterprise that works through a cooperative system to provide agricultural and rural loans.
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The "Farm Credit System" is a government-sponsored enterprise that works through a cooperative system to provide agricultural and rural loans.

<h3>What is Farm Credit System?</h3>

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To know more about the Farm Credit System, here

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