An understatement of year 1's ending inventory will
A) cause year 2's cost of goods sold to be overstated.
B) result in an understatement of year 2's beginning inventory.
C) not affect year 2's ending owner's equity.
D) have no effect on year 2's gross margin.
B
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The environmental and situational or cultural ______ in which the communication occurs (its setting) can also affect its outcome.
Fill in the blank(s) with the appropriate word(s).
Which of the following is true concerning the direct method of calculating operating cash flows?
A) does not tie the net income reported on a company's income statement to the net cash provided from operating activities B) does not show how the changes in the elements of a company's operating cycle affected its operating cash flows C) reports a company's operating cash inflows separately from its operating cash outflows D) All of these choices are true concerning the direct method.
Service organizations do not develop standard rates for which of the following?
A) Any service costs B) Overhead C) Direct materials D) Labor
Describe the U.S. GAAP requirement in accounting for joint venture investments.,