Inventory system correctly recorded purchase of merchandise

Assignment Help Financial Accounting
Reference no: EM13755213

A company using the periodic inventory system correctly recorded a purchase of merchandise, but the merchandise was not included in the physical inventory count at the end of the accounting period. The error caused which of the following?

An understatement of both net income and inventory.

An overstatement of inventory, purchases, and accounts payable.

An understatement of inventory, purchases, and accounts payable.

An overstatement of net income and inventory.

Reference no: EM13755213

Questions Cloud

How knowledge of polictical background of palestine help : How does knowledge of the polictical, historical, and cultural background of Palestine help in the interpretation of the New Testament?
Delivering information anywhere and anytime : Write 3 pages research on Data Communication: Delivering Information Anywhere and Anytime
Inventory and net income were overstated : On December 15, 2014, Transport Company accepted delivery of merchandise that it purchased on credit. As of December 31, 2014, the company had neither recorded the transaction nor included the merchandise in its ending inventory amount because the se..
Draw and explain the demand curve facing each firm : Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
Inventory system correctly recorded purchase of merchandise : A company using the periodic inventory system correctly recorded a purchase of merchandise, but the merchandise was not included in the physical inventory count at the end of the accounting period. The error caused which of the following?
How is a gospel different from a biography : How is a Gospel different from a biography? What is the purpose of an ancient biography, and how do these differ from contemporary biographies?
Perform a correlational analysis on the variables : Perform a correlational analysis on the variables: Student Extroversion, Lecture Extroversion, Student Agreeableness, Lecture Agreeableness - Calculate a regression that examines whether or not you can predict if a student wants a lecturer to be e..
Statement of retained earnings and balance sheet : Prepare an Income Statement, Statement of Retained earnings, balance sheet
What is the nature of nationalism that leads some people : What is the nature of nationalism that leads some people to claim that their national identity is their principal identity?

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Explain how much price should be increased

Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so? If he does, what general guide can you suggest as to explain how much price should be increased?

  Eight basic steps required in the implementation phase

As a member of a development team, you’ve been asked to develop and test the new AIS. Discuss the eight basic steps required in the implementation phase of the SDLC in the proper order they should occur.

  Show that the average rate of change

Show that the average rate of change of a strictly increasing function is positive and that the average rate of change of a strictly decreasing function is negative.

  The cash break-even quantity-financial break-even quantity

A project has the following estimated data: price = $54 per unit; variable costs = $29.16 per unit; fixed costs = $6,100; required return = 16 percent; initial investment = $13,000; life = three years. Ignoring the effect of taxes, the accounting bre..

  What is the purpose of the statement of cost of goods

What is the purpose of the Statement of Cost of Goods Manufactured, example of direct labor cost for an airplane manufacturer

  What journal entry should siegle to record this exchange

The equipment had a recorded amount on Mayo's books of $21,000. What journal entry should Siegle make to record this exchange?

  Compute mccoy 2010 earnings per share

McCoy Corporation has outstanding at December 31, 2010, 50,000 shares of $20 par value, cumulative, 8% preferred stock and 200,000 shares of $5 par value common stock. All shares were outstanding the entire year.

  Illustrate what are the us tax consequences of teny year

During Year 2, Teny had no earnings and profi ts, paid no foreign income taxes, and distributed a $12 million dividend. Assuming the U.S. corporate tax rate is 35%, illustrate what are the U.S. tax consequences of Teny’s Year 1 and Year 2 activitie..

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the above transactions.

  Question direct and absorption costingthe information that

question direct and absorption costingthe information that follows pertains to xyz products for the year ended 31st

  Primary role of internal controls in managing a business

What is the primary role of internal controls in managing a business?

  Analytical procedures as risk assessment procedures

Identify and briefly describe three ways you could use analytical procedures as risk assessment procedures, Identify and briefly describe three ways you could use analytical procedures as substantive procedures through the audit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd