Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2012, but the inventory was excluded in error during the ending inventory count. What impact will this have on fiscal 2013 financial reporting?
A)Gross margin is understated by $1,000.
B)Cost of sales is overstated by $1,000.
C)Ending inventory is not affected by the prior year inventory counting error.
D)Beginning inventory is overstated by $1,000.

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The Answer of Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2012, but the inventory was excluded in error during the ending inventory count. What impact will this have on fiscal 2013 financial reporting?
A)Gross margin is understated by $1,000.
B)Cost of sales is overstated by $1,000.
C)Ending inventory is not affected by the prior year inventory counting error.
D)Beginning inventory is overstated by $1,000.

Assume That a Purchase Invoice for $1,000 Was Appropriately Recorded