Question: An error in the ending inventory for the year ended december 3 1 , 2 0 2 3 : A . Has no effect An

An error in the ending inventory for the year ended december 31,2023: A. Has no effect An error in the ending inventory for the year ended December 31,2023:
A. has no effect on the 2023 financial statements, but will create an error in the 2024 financial statements.
B. automatically creates errors in the ending inventory balance in the 2023 and 2024 financial statements.
C. automatically creates errors in cost of goods sold in the 2023 and 2024 financial statements.
D. affects only the 2023 financial statements.
An error in the ending inventory for the year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Problem 11-7A Withdrawal of a partner L04 CHECK FIGURES: d. Dr. Gale, Capital $18,750; e. Cr. Gale, Capital: $8,531.25 Gale, Mclean, and Lux are partners of Burgers and Brew Company with capital...

Q:

Current Attempt in Progress Coronado Inc which follows IFRS had the following events during the year ended December 3 1 2 0 2 3 Coronado has an income tax rate of 3 0 Coronado has investments that...

Q:

Tarawa Incorporated made the following errors when counting inventory on December 31, 2021, December 31, 2022, and December 31, 2023: Inventory on December 31, 2021 was understated by $655,000...

Q:

1.Rachel Inc. is a retail store that sells building supplies. Rachel has a calendar year end. Rachel understated its ending inventory for the year ended December 31, 2019. How would the error in the...

Q:

Wiley ebook Question 14 (2 points) Listen If Ending Inventory for the year ended December 31, 2018 is understated, what would be the effect of this error on the balance of total Retained Earnings?...

Q:

Adrian Inc. sells computer monitors with a one-year warranty. Warranty costs are expected to average 6% of sales. Sales for 2017 (the first year of operations for Adrian) were $1,400,000 and actual...

Q:

1) Assume you are using net sales as the base in vertical analysis. Cost of goods sold in20X1 is 67%, and is 70% in 20X2. This would always indicate that:A) gross margin has declinedB) cost of goods...

Q:

Question 36 2.85714 points Save Ans Lisa Inc. is a fabric store that sells yarn, fabric and other supplies. Lisa has a calendar year end. Lisa understated its ending inventory for the year ended...

Q:

PART (A) The table below shows the beginning inventory, purchase and sales of the Gypsum company's single product over the financial year 2020. Beginning Inventory & Purchases Date Description Units...

Q:

An error in the ending inventory for the year ended December 3 1 , 2 0 2 2 : Select one: a . automatically creates errors in cost of goods in the 2 0 2 2 and 2 0 2 3 financial statements b ....

Q:

An error in the ending inventory for the year ended December 31, 2016: A. automatically creates errors in the ending inventory balance in the 2016 and 2017 financial statements B. automatically...

Q:

The directors of QRS, a listed entity, have met to discuss the business's medium to long-term financing requirements. Several possibilities were discussed, including the issue of more shares using a...

Q:

A closed surface in the form of a cube with side a, is in the presence of a uniform magnetic field of magnitude or modulus B in such a way that the field lines are perpendicular to one of the faces...

Q:

3. Name three metals suitable for use as sacrificial anodes to protect the steel hull of a ship from rusting.

Q:

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...