Which of the following is not true about the effect of an error in the reported ending inventory?
a. After two years, the error "washes out"; b. Operating expenses will be wrong; c. Overstated ending inventory causes net income to be overstated; d. Beginning inventory in the following year will also be wrong; e. Reported sales will not be affected
B
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The acid-test ratio is a stricter test of a company's ability to pay its current debts as they are due than the current ratio is
a. True b. False Indicate whether the statement is true or false
The accounting changes identified by current GAAP include all of the following except
A) change in correction of an error. B) change in accounting principle. C) change in accounting estimate. D) change in reporting entity.
Survey questionnaires may be administered in four major modes: 1. telephone interview, 2. personal interviews, 3 . mall interviews, and 4. electronic interviews (Figure 7.4 in text)
Indicate whether the statement is true or false
The standard error of the percentage depends on two factors: the variability, denoted by p x q, and the sample size, n
Indicate whether the statement is true or false