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)No effect on cost of goods available for sale.
C)Cost of sales is understated by $1,000.
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)No effect on cost of goods available for sale.
C)Cost of sales is understated by $1,000.
D)Beginning inventory is overstated by $1,000.

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