If a company overstates its ending inventory balance for 2015 by $10,000, and understates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014? Effect on 2015 Net Income Effect on 2014 Net Income
a. Overstated by $15,000 Understated by $10,000
b. Understated by $5,000 Overstated by $10,000
c. Overstated by $15,000 Understated by $5,000
d. Overstated by $10,000 Understated by$5,000
c
You might also like to view...
What is an advantage of providing benefits instead of cash compensation?
A. All companies that provide benefits become eligible for tax breaks by state and federal agencies. B. Younger employees place more importance on benefits than cash compensation. C. Employers can assemble creative benefits packages that give them a competitive advantage. D. It is simpler to pay compensation in benefits than in cash. E. Benefits give greater control to employees over cash compensation.
Under the periodic inventory system, which of the following statements is correct?
A) During the period, the business records the cost of all inventory bought in the Merchandise Inventory account. B) Purchase Returns and Allowances and Purchase Discounts are contra expense accounts. C) Freight in is debited to the Purchases account. D) Purchase discounts are recorded as credits to the Purchases account.
There are generally cost advantages associated with the use of prototype stores
Indicate whether the statement is true or false
The major advantage of observation is its ability to measure attitudes in a natural setting
Indicate whether the statement is true or false