A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022?

What will be an ideal response?


2021:
Cost of goods sold is overstated by $8,000.
Gross profit is understated by $8,000.

2022:
Cost of goods sold is understated by $8,000.
Gross profit is overstated by $8,000.

Business

You might also like to view...

Fierra Inc is a German automobile manufacturer that has a five percent market share in the United States' automobile market

The company has a unit in North Carolina that imports Fierra's automobiles from its parent company in Germany and assembles them. Which of the following measures is in accordance with the Foreign Commerce Clause of the U.S.? A) The government of North Carolina imposes an additional 10 percent tax on Fierra cars. B) The government of Georgia bans the sale of Fierra cars. C) The government of North Carolina asks Fierra Inc. to shut down its import unit in the state. D) The federal government imposes an additional 100 percent tax only on Fierra cars being sold in North Carolina.

Business

Which approach to addressing resistance to change would a manager draft an influential figure of seniority into the change process, not necessarily to play an active role, but to give endorsement to the change and convince the rest of the staff that the change is a good idea?

a. Negotiation b. Participation c. Coercion d. Manipulation

Business

Performance excellence ends with the organization’s mission, vision, and values.

a. True b. False

Business

Which of the following is not an example of social sharing?

a. Link to a celebrity blog. b. A photo you shared on Instagram last week. c. The Harlem Shake video. d. Your high school yearbook. e. A brand you 'like' on Facebook

Business