Assume that a $500 purchase invoice received close to year-end is not recorded in fiscal 2016,but the inventory is appropriately included in the ending inventory count.What impact will this have on fiscal 2017 financial reporting?
A)Cost of sales is understated by $500.
B)Gross margin is understated.
C)Operating expenses are overstated by $500.
D)Operating profit is overstated by $500.

Question

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The Answer of Assume that a $500 purchase invoice received close to year-end is not recorded in fiscal 2016,but the inventory is appropriately included in the ending inventory count.What impact will this have on fiscal 2017 financial reporting?
A)Cost of sales is understated by $500.
B)Gross margin is understated.
C)Operating expenses are overstated by $500.
D)Operating profit is overstated by $500.

Assume That a $500 Purchase Invoice Received Close to Year-End