If merchandise inventory is understated at the end of 2017, and the error is not discovered, how will net incomebe affected in 2018?
Q: hat is the cost of HIBISCUS Company's inventory on December 31, 2020, under the average method?
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Q: During 2021, WMC Corporation discovered that its ending inventories reported on its financial…
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Q: On December 31, 2018, Stevenson Company overstated ending inventory by $36,000. How does this error…
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Q: in the next year. Assuming the periodic inventory system is used, which of the following adjusting…
A: The correct answer is D . Debit Sales Returns and Allowances and credit Customer Refunds Payable
Q: If merchandise inventory is understated at the end of 2015, and the error is not discovered, how…
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Q: (a) Discuss how BB's profitability in 2020 and 2021 would be affected as it recorded the order as…
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Q: Which of the following errors will normally result in overstatement of 2017 net income? failure to…
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Q: Inventory at December 31, 2021 was overstated by P 20,000. What would be the adjusting entry if the…
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Q: An entry to record Purchases and related Accounts Payable of \130,000 for merchandise purchased…
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Q: If merchandise inventory is understated at the end of 2020, and the error is not discovered, how…
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Q: In 2019, ending inventory is overstated. What is the effect of the error on net income in 2019 and…
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Q: At December 31, 2018, Stevenson Company overstated ending inventory by $36,000. How does this error…
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Q: 1. In 2021, Jules Company realized that its ending inventory was understated byP1,500 in 2019. How…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
If merchandise inventory is understated at the end of 2017, and the error is not discovered, how will net income
be affected in 2018?
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- If merchandise inventory is understated at the end of 2015, and the error is not discovered, how will net income be affected in 2016?In 2019, ending inventory is overstated. What is the effect of the error on net income in 2019 and 2020? A. Net income is understated in 2019 and 2020. B. Net income is understated in 2019 and overstated in 2020. C. Net income is overstated in 2019 and understated in 2020. D. Net income is overstated in 2019 and 2020.If ending inventory is overstated in the current fiscal year, what effect will this have on net income for the next fiscal year? a.Net income would be understated. b.Net income would only be affected in the current fiscal year, and it would be understated. c.There would be no effect on net income. d.Net income would be overstated.
- what is the net effect of the errors in the 2018 net income?Which of the following errors will normally result in overstatement of 2017 net income? O failure to record merchandise purchases in 2016 failure to record accrued salaries expense in 2016 understatement of 2016 ending merchandise inventory O overstatement of prepaid expense in 2016If the ending inventory is overstated in the current year: Net income will be understated in the current year. Next year's beginning inventory will also be overstated. Next year's net income will be overstated. Next year's beginning inventory will be understated.
- What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example. Effect on 2020Net Income a. Failed to record a 2020 expense. + b. Ending 2019 inventory is understated. c. Ending 2020 accrued expense is overstated. d. Ending 2020 inventory is overstated. e. Ending 2019 accrued revenue is understated. f. Ending 2020 prepaid expense is overstated. g. Ending 2019 unearned revenue is overstated. h. Ending 2020 accrued revenue was overstated. i. Ending 2019 prepaid expense was overstated. j. Ending 2019 accrued expense is overstated. k. Ending 2020 unearned revenue is understated.1. If ending inventory on December 31, 2019, is overstated, then, a) cost of goods sold for the year ended December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31, 2020, will be understated. d) cost of goods sold for the year ended December 31, 2019, will be overstated.
- If the beginning inventory for 2025 is overstated, the effects of this error on cost of goods sold for 2025, net income for 2025, and assets at December 31, 2026, respectively, are Ⓒ understatement, overstatement, no effect. O understatement, overstatement, overstatement. Ⓒoverstatement, understatement, no effect. O overstatement, understatement, overstatement.Show how the following independent errors will affect net income on 2020. Choose if its overstated, understated and no effect Ending inventory in 2020 overstated Failed to accrue 2020 interest revenue Failed to count office supplies on hand at 12/31/20. Cash expenditures have been charged to an office supplies expense account during the year 2020 Ending inventory in 2020 understated Overstated 2020 depreciation expense; 2021 expense correct Ending inventory in 2020 overstated Failed to accrue 2020 interest revenue A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to maintenance expense in 2020 Failed to count office supplies on hand at 12/31/20. Cash expenditures have been charged to an office supplies expense account during the year 2020. Row Failed to accrue 2020 wages Ending inventory in 2020 understated Overstated 2020 depreciation expense; 2021 expense correctWhat was the reason for the FASB changing the accounting method for reporting lower-of-cost-or-market inventory in 2015?
