Solved

Indicate Whether Each of the Following Statements Is True or False.(Assume

Question 101

Matching

Indicate whether each of the following statements is true or false.(Assume a periodic inventory system)

Premises:
If the balance in ending inventory is overstated,selling and administrative expenses will not be affected.
If the balance in ending inventory is overstated,net income will be understated.
If the balance in ending inventory is understated,retained earnings will be understated.
If the balance in ending inventory is overstated,assets will be overstated.
If the balance in ending inventory is overstated,cost of goods sold will be overstated.
Responses:
True
False

Correct Answer:

If the balance in ending inventory is overstated,selling and administrative expenses will not be affected.
If the balance in ending inventory is overstated,net income will be understated.
If the balance in ending inventory is understated,retained earnings will be understated.
If the balance in ending inventory is overstated,assets will be overstated.
If the balance in ending inventory is overstated,cost of goods sold will be overstated.
Related Questions

Q15: The write-off to record the amount of

Q61: Under a periodic system,the account debited for

Q105: If a company uses the periodic inventory

Q105: Indicate whether each of the following statements

Q106: Net sales is calculated by subtracting cost

Q110: Sales discounts do not affect a company's

Q112: Sales discounts affect net sales,but purchase discounts

Q113: With a periodic inventory system,the cost of

Q114: A company's amount of cost of goods

Q133: Assume a company uses the periodic inventory

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents