Pow Corp. accidentally overstated its 2018 ending inventory by $750. Assume that ending 2019 inventory is accurately counted. The error in 2018 will have what effect on Pow Corp.? Oa. 2018 net income is understated by $750. Ob. 2018 net income is overstated by $750. Oc. 2019 net income is understated by $750. Od. Both b and c are correct.

What is the effect of a $51000 overstatement of last year's inventory on current years ending retained earning balance? Overstated by $51000. No effect. Understated by $51000. Need more information to determine.

The 2022 and 2023 financial statements of Marigold Inc. contained the following errors: Ending Inventory Insurance Expense O 2022 $24840 understated $13640 overstated $13640 understated $30040 understated $10400 overstated 5200 understated 2023 $16640 understated Assuming that none of the errors were detected or corrected, by what amount will 2023 income before taxes be overstated or understated? 3000 overstated

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Green Company overstated its inventory by $50 million at the end of 2021. The discovery of this error (in 2023), before adjusting or closing entries, would require: A. An increase of retained earnings in 2023 balance sheet. B. A debit to inventory of $50 million in 2023 balance sheet. C. the restatement of 2021 and 2022 fınancials D. none of the above O A O B

18. The accountant for the Fred Company did not record a purchase of merchandise on credit or include the items in the ending inventory. The effect of these omissions on assets, liabilities, and retained earnings would be (assume a periodic inventory system): Assets Liabilities Retained Earnings Understate Understate Understate а. b. Understate Understate No effect No effect d. Understate Understate No effect с. No effect Understate

If 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.

Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment (S in millions) Inventories $4 6,008 x Total assets %24 Deferred tax liabilkies $ 54,108 x 277 x Equity 0 x b. Determine the necessary adjustments to the following income statement line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Cost of goods sold %24 0 x Pretax income %24 0 x Income tax expense $ 0 x Net income %24

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Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will this error affect net income for 2018? Net income will be understated by $30,000. Net income will be understated by $15,000. O Net income will be overstated by $15,000. O Net income will be overstated by $30,000. O The understatement of inventory in 2017 will not affect income in 2018.