Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2019, but the inventory was excluded in error during the ending inventory count. What impact will this not have on fiscal 2020 financial reporting?
A)Beginning inventory is understated by $1,000.
B)Gross margin is overstated by $1,000.
C)Cost of sales is understated by $1,000.
D)Inventory is overstated on the balance sheet.

Question

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The Answer of Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2019, but the inventory was excluded in error during the ending inventory count. What impact will this not have on fiscal 2020 financial reporting?
A)Beginning inventory is understated by $1,000.
B)Gross margin is overstated by $1,000.
C)Cost of sales is understated by $1,000.
D)Inventory is overstated on the balance sheet.

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