The accountant for Angie Company made the following errors related to purchases of merchandise and ending inventory in 2016: 1. A $2,200 purchase of merchandise on credit was not recorded or included in ending inventory. 2. A $3,180 purchase of merchandise on credit was recorded, but it was inadvertently omitted from the end-of-year physical inventory count. ? Assuming a periodic inventory
system, Angie's Company's 2016 net income will be
A) understated by $3,180.
B) understated by $2,380.
C) overstated by $5,380.
D) overstated by $3,180.
A
You might also like to view...
Which of the following measures of central tendency for a normal distribution is not identical?
A) mean B) median C) mode D) All are identical for a normal distribution. E) none are identical
Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning inventory$120,000 $130,000 Cost of goods purchased 250,000 275,000 Cost of goods available for sale 370,000 405,000 Ending inventory 130,000 135,000 Cost of goods sold$240,000 $270,000 Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,000 and 2) ending inventory at the end of Year 2 was overstated by $6,000. Given this information, the correct cost of goods sold figure for Year 2 would be:
A. $264,000 B. $276,000 C. $249,000 D. $291,000 E. $285,000
In negotiations, the walk-away point that represents the lowest offer a party would be willing to accept is known as the ________
A) reservation value B) best alternative C) peak price point D) price objection E) zone of possible agreement
Direct labor costs are included in the conversion costs of a product
Indicate whether the statement is true or false