Question: If a company misstates ending inventory, Select answer from the options below there will be a miscalculation of the working capital and current ratio. retained

If a company misstates ending inventory,
Select answer from the options below
there will be a miscalculation of the working capital and current ratio.
retained earnings will be misstated, but the balance sheet will not be misstated.
there will be no effect on the working capital.
the cost of goods sold will not be affected.

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:

Universities often rely on a high school students grade point average (GPA) and scores on the SAT or ACT for the college admission decisions. Consider the data for 120 applicants on college admission...

Q:

Ann M. Martin Company makes the following errors during the current year. (Evaluate each case independently and assume ending inventory in the following year is correctly stated.) 1. Ending irventory...

Q:

the options are overstated, understated, no effect Exercise 8-24 Ann M. Martin Company makes the following errors during the current year. (Evaluate each case independently and assume ending...

Q:

Exercise 8-24 Ann M. Martin Company makes the following errors during the current year. (Evaluate each case independently and assume ending inventory in the following year is correctly stated.) 1....

Q:

Burgess Company makes the following errors during 2017. 1. Ending inventory is understated, but purchases are recorded correctly. 2. Ending inventory is correct, but a purchase on account for 2017...

Q:

Current Attempt in Progress Ann M . Martin Company makes the following errors during the current year. ( Evaluate each case independently and assume ending inventory in the following year is...

Q:

Flint Limited makes the following errors during the current year. Each error is an independent case. 1. Ending inventory is overstated by $1,060, but purchases are recorded correctly. 2. Both ending...

Q:

Ann M. Martin Company makes the following errors during the current year. (Evaluate each case independently and assume ending inventory in the following year is correctly stated.) 1. Ending inventory...

Q:

Ann M. Martin Company makes the following errors during the current year. (Evaluate each case independently and assume ending inventory in the following year is correctly stated.) 1. 2. Ending...

Q:

X i Requirements 1. Make Bull Ranch Company's closing entries at December 31, 2018. Explain what they accomplish and why they are necessary. 2. Post the closing entries to Retained Earnings and...

Q:

just need help with the ACID test. not sure what im missing.. 2 Comparative Balance sheet (dollars in thousands) This Year Last Year nts $ 1,160 10,800 12,100 630 24,690 $ 1,260 6,800 11,300 510...

Q:

Let : [0, 1] R be continuously differentiable (i.e., they are differentiable and their derivatives are continuous) on (0,1), with a also increasing there. Show that there is c> 0 (o,) with such that...

Q:

When the input to a linear time-invariant system is x [n] = 5u[n], the output is y[n] = [2 () n + 3 ( ) n ] u[n]. (a) Find the system function H(z) of the system. Plot the poles and zeros of H(z),...

Q:

Analytical review procedures may be performed at various times within the audit. True false

Q:

14-6 Exercise 14-6 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2 Dobbs Company issues 9%, two-year bonds, on December 31,2021 , with a par value of $109,000 and...