1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marta [7]
3 years ago
11

Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on th

e financial statements?
Business
1 answer:
Serjik [45]3 years ago
5 0

Answer:

The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

Explanation:

The relationship between the elements of inventory in a financial statement is as shown below,

Opening balance + purchases - cost of goods sold = closing balance

As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

You might be interested in
This model focuses on the practitioner as the agent of the occupational environment,
Ainat [17]

Answer: A) The practitioner incorporating the principles of therapeutic use of self.

Explanation: The therapeutic use of the self is the ability of the therapist to be aware of himself and the patient and take care of what he communicates. It is as important as the techniques and knowledge and often makes the difference between success and failure in a treatment. By intervening therapeutically using our "I", counselling appears as a valuable tool that helps the therapist work more effectively to achieve the ultimate goal with the lowest possible personal cost.

4 0
3 years ago
Governments use _____ to boost exports and restrict imports. formal instruments of trade policy administrative trade policies su
Mila [183]
<span>Governments use administrative trade policies to boost exports and restrict imports.

When the do this, they are helping producers but hurting the consumer. The administrative trade policies are taking away goods that consumers want by not allowing them to purchase or import the item.</span>
4 0
3 years ago
1. Explain the link between scarcity and each of the following.<br>i. Choice, (2 marks)​
vagabundo [1.1K]
Scarcity means that resources are limited and because resources are scarce people must make choices
8 0
3 years ago
What is the difference between a commercial bank and a savings bank
Andreas93 [3]
The primary difference is the way each is regulated, which determines the type of banking products they offer. ... Both commercial banks and S&Ls also make loans to businesses and government agencies.
3 0
3 years ago
Read 2 more answers
A sole priorietorship is a business that is owned by a number of people?<br><br> True or false?
miskamm [114]
The answer is "false"
3 0
3 years ago
Other questions:
  • The following information is available for Oriole Company
    15·1 answer
  • An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,979. If Allowance fo
    12·1 answer
  • Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount
    12·1 answer
  • Pinnacle Corp. budgeted $259,470 of overhead cost for the current year. Actual overhead costs for the year were $209,420. Pinnac
    10·1 answer
  • g Suppose that Real GDP is growing at 7.3% per year, and that the population is growing at 2.3% per year. This implies that Real
    12·1 answer
  • Why should you avoid the use of sarcasm , cliches, and idioms in business letters?
    11·1 answer
  • Strong brand names: multiple choice 1 are easy to create. guarantee brand loyalty. guarantee product quality. act as a signal of
    15·1 answer
  • All of the following pairs of goods are substitutes except A. we observe the price of automobiles decreases and the demand for p
    7·1 answer
  • A client profile is not complete without a family income statement. A typical one would include:_________.
    6·1 answer
  • Last year Wei Guan Inc. had $795 million of sales, and it had $265 million of fixed assets that were used at 65% of capacity. In
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!