Question

An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
1. Year 1 cost of goods soldunanswered
2. Year 2 cost of goods soldunanswered
3. Year 2 ending inventoryunanswered
4. Year 2 beginning inventory

Answer 1

Answer:

1. Year 1 cost of goods sold

2. Year 2 cost of goods sold

4. Year 2 beginning inventory

Explanation:

If year 1's ending inventory is wrong, the beginning inventory of year 2 will also be wrong (they are the same).

Cost of goods sold = cost of goods available for sale - ending inventory, so COGS for year 1 will be affected since ending inventory is wrong

Cost of goods available for sale = beginning inventory + purchases - ending inventory. Since beginning inventory year 2 is wrong, the cost of goods available for sale will also be wrong, as well as COGS