A material overstatement in ending inventory was discovered after the year-end financial statements of a company were issued to the public. What effect did this error have on the year-end financial statements

Answers

Answer 1

Answer:

Current assets to be overstated and gross profit to be overstated.

Explanation:

Inventory is the product that is sold by a business to generate profits. They are purchased and sold out to customers within a given period.

If inventory is overstated it means that cost of goods sold is understated. This will inflate the profit of the business in financial statements.

Cost of goods sold = Starting inventory + Purchases - Ending Inventory

If ending inventory is overstated it will reduce cost of goods sold.

Also as inventory is a current asset of the business that can be sold within a short time, an overstatement of inventory is an overstatement of current assets.


Related Questions

Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z dies after 15 years of receiving income benefit payments. What does Z's beneficiary receive

Answers

Answer: Nothing

Explanation:

From the question, we are informed that Z chooses a life income with 10 year period certain settlement option for the annuity Z owns and that Z dies after 15 years of receiving income benefit payments. Based on the above situation, Z's beneficiary receive will receive nothing.

This is because Z has already gotten the income benefits payment since it's for a 10 year period

A practical benefit of ________________is that it requires little in the way of resources which can be helpful for organizations that donât have a dedicated content team, but that still want to position themselves as trusted advisors in their industry.

a. Auto-Generated Content
b. Created Content
c. Promoted Content
d. Amplified Content
e. Curated Content
f. Verified Content

Answers

Answer:

Option e (Curated content) is the correct choice.

Explanation:

Curated content becomes material from outside outlets that people communicate throughout your community on your platform, blog as well as social media platforms beyond your business. This should have been important and beneficial to every intended market, and prove you understand the importance different businesses contribute to your business or topics of concern.

The other choices don't apply to particular circumstances. Because then the choice is indeed the right one.

A description of an economy's share of households reflecting different income levels is called income _________.

Answers

Answer: Income distribution

Explanation:

Income distribution is a description of an economy's share of households reflecting different income levels.

Income distribution helps to show how the gross domestic product of an economy is being distributed among the people in the country. Income distribution is also used to know the number of poor or wealthy people in the society.

People and groups that provide an organization with its productive resources, and thus have a claim on and a stake in the organization, are known as

Answers

Answer:

Stakeholders

Explanation:

The stakeholders are the persons and group that have an interest in the company and it directly benefits or suffered from the organization actions

It includes various persons like employees, suppliers, investors, customers, government, unions, etc

Therefore according to the given situation, the answer is a  stakeholder as they have the stake in the organization

) for correct answers, how will your scores be affected with each submission you use up? select all that apply. after a few submissions you will get zero points. you will not lose any points for correct answers even if you use all allowed submissions. after a few submissions, you will start to lose a percentage of the points for that question. you will not lose any points for the first few submissions. (h) how much are the prelab, inlab, and postlab parts worth? prelab: % inlab: % postlab % (i) as a rule, the prelab, inlab, and postlab are due at a particular time each week. fill in the appropriate answer in each of the boxes below. prelab: inlab: postlab:

Answers

Answer:

The answer is "You won't lose any answers even if you're using all approved entries".

Explanation:

In the given question there is some mistake in the choices. so, we define only the correct answer.

The above-given choices describe the  Its application may also apply to the reports produced so that it can make the quality of the documentation acceptable.  

It is just an act that offers someone a document, a proposal, a written document, etc. because it can be considered or accepted. Its state of obedience action of acknowledging another person's authority or power.

The correct option  is You won't lose any answers even if you're using all approved entries.

The following information should be considered:

 The given choices represent the  Its application may also apply to the reports generated so that it can make the quality of the documentation acceptable.   It is just an act that offers someone the document, a proposal, a written document, etc. since it can be accepted.

Learn more: https://brainly.com/question/17429689?referrer=searchResults

Jones Manufacturing needs $450,000 to build a new plant. It must also spend $200,000 on new equipment for the plant. Both of these needs are examples of

Answers

Answer: long term financing needs

Explanation:

Long-term financing are the capital requirements for an organization for a period of five or more years. Long term financing needs are utilized for the capital expenditures in fixed assets such as the land and building, plant and machinery etc.

Therefore, Jones Manufacturing needs $450,000 to build a new plant. It must also spend $200,000 on new equipment for the plant. Both of these needs are examples of long term financing needs.

A politician in a small town notices that many citizens in the town cannot find work. In order to assist these individuals in finding work, the politician proposes that all unemployed adults be made eligible for a large monthly cash payment to help them meet basic needs during their job search. Which of the following is true regarding the goal alignment of this program?

a. The goals of the politician and the goals are the job seekers would be aligned, since unemployed individuals would have a stronger incentive to remain employed.
b. The goals of the politician and the goals of the job seekers would not be aligned, since unemployed individuals would have a stronger incentive to remain unemployed.
c. The goals of the politician and the goals of the job seekers would be aligned, since unemployed individuals would have a stronger incentive to look for work.

Answers

Answer:

b. The goals of the politician and the goals of the job seekers would not be aligned, since unemployed individuals would have a stronger incentive to remain unemployed

Explanation:

Unemployed people would have the incentive to seek employment so as to meet basic needs. But if the politician is already meeting that need, there would be no incentive for the unemployed to seek employment. So, the goal of the politician and job seekers aren't aligned.

(Scenario: A Monopolist) A monopolist faces a demand curve given by P = 20 Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing output level?

Answers

Answer:

Profit-maximizing output level = 5 unit

Explanation:

Given:

P = 20 - Q

TC = 2Q

MR = 20 - 2Q

MC = 2Q

Find:

Profit-maximizing output level

Computation:

Profit-maximizing output level.

MR = MC

20 - 2Q = 2Q

Q = 5

Profit-maximizing output level = 5 unit

"A corporate issuer is obligated to file an 8K report of significant events within how many business days of the event?"

Answers

Answer:

4 business days

Explanation:

corporate issuer is obligated to file an 8K report of significant events within 4 business day business days of the event.

File 8K is called current report in the concept of economics, it must be filed within 4 business day in order to deliver issues or information that the shareholders needed to be aware of. It should be noted that file 8k is always filed along with Securities and Exchange commission (SEC) which is an independent federal government regulatory agency.

How managers plan significant investments in projects that have long term implications such as purchasing new equipment or introducing new products is called

Answers

The answer is Capital Budgeting.

Automatic stabilizers are provisions in the law that create automatic ______ in government spending or ______ in taxes when real output declines.

Answers

Answer:

increase

decrease

Explanation:

Automatic stabilizers are provision in the law that automatically stabilise government spending and tax rate to stabilise the economy.

When output is falling, in order to prevent the economy slipping into a recession, the automatic stabilisers increase government spending and reduce taxes. These increases money supply

Globalizations and information technology advances are primary reasons why supply chain management has become a competitive priority for companies

Answers

Answer:

True.

Explanation:

This statement is true, because globalization and technological advances were essential for the supply chain to become global and internationalized, this is due to the information and transport technologies that enable a quick and easy flow at each stage of the chain.

Therefore, supply chain management has been increasingly valued in the global market, where companies seek to outsource activities in their supply chain to achieve strategic and competitive advantages, such as reduced labor and raw material costs.

A Prime Minister differs from a President in which of the following ways? Select all that apply.
A Prime Minister holds power as long as Parliament approves.
A Prime Minister holds office for six years, or until his party holds a vote of "no confidence."
A President is elected every four years, whereas Parliamentary elections are held every five years.
A President is elected by the general public, and a Prime Minister is the leader of the majority party in the House of Commons.
A Prime Minister can be ousted by a vote of "no confidence" by her/his party's parliamentary ministers.

Answers

Answer:

The Prime Minister is the head of the Executive branch of the Government in the United Kingdom as well as other Parliamentary or Semi-presidential Government systems.

The President is the head of the Executive branch of the Government in the United States and other Republican states.

The differences between the two especially between the United Kingdom and the United States is;

A President is elected by the general public, and a Prime Minister is the leader of the majority party in the House of Commons.

The President is elected directly by the will of the people which in the United States is represented by the Electoral College. The Prime Minister on the other hand is elected if their party and affiliates hold a majority in the House of Commons (Parliament).

A President is elected every four years, whereas Parliamentary elections are held every five years.

The Presidential election in the United States is held every 4 years with the next one being this year, 2020. By contrast Parliamentary elections in the UK are held every 5 years but this can be less if the Prime Minister dissolves parliament.

A Prime Minister can be ousted by a vote of "no confidence" by her/his party's parliamentary ministers.

As the Prime Minister is elected by their party's representatives in Parliament, they can also be removed by them. This happens when the members pass a vote of no confidence in the the minister.

The news headline "Wal dash Mart to carry 'morning dash after' contraception comma" deals with the ______ question(s) of economics.A. whyB. whatC. howD. what and howE. for whomfor whom

Answers

Answer:

B. what

Explanation:

The questions in economics seek to solve the problems of production in a society, given that resources to produce are limited. The questions are what to be produced, how it should be produced, and for whom it should be produced.

Hence, in this situation, the correct answer, is option B, as the deals with the WHAT question(s) of economics.

For a sales-type lease:_______
a) the gross profit will be lower if the residual value is unguaranteed
b) the gross profit will be higher if the residual value is guaranteed
c) the present value of the unguaranteed residual value is added
d) to determine the cost of goods sold

Answers

Answer:

no option is correct (I assume options C and D were one option only)

Explanation:

On a sales type lease, the gross profit generated by the lease is determined in a similar way that net present value of a project is determined.

You must first calculate the present value of the lease payments that should be received using the company's discount rate, and then subtract the asset's value. If the present value of the future lease payments is higher than the present value of the asset, then you should have a gross profit.

The gross profit is not affected whether the asset has or doesn't have a guaranteed residual value.

Suppose the demand for tacos decreases. What will happen to producer surplus in the market for tacos?

Answers

Answer:

it decreases

Explanation:

As a result of the decrease in demand for tacos, the price of tacos would fall, all other things remaining equal.

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. As a result of the fall in price, the producer surplus would decrease.

Assume that price of tacos before the fall in demand is $10

the least price, the seller is willing to sell tacos is $3.

Producer surplus = $10 - $3 = $7

After the fall in demand, price falls to $8

producer surplus becomes = $8 - $3 = $5

We can see that producer surplus fell

The production strategy of a firm using a global strategy would likely entail A. A narrow selection of models and styles with each model/style focused on identified international market niches. B. Locating plants on the basis of maximum competitive advantage—in countries where manufacturing costs can be kept low or close to major markets to economize on shipping costs or use of a few world-scale plants to capture maximum scale economies and experience curve effects, as most appropriate. C. Producing the various products at plants scattered around the world. D. Producing a broad product line (many models and varieties) so that buyers in each target national market would be able to select the item that best met their individual needs. E. Creating a different product lineup for each major area of the world (Europe, North American, Latin America, and the Asian Pacific).

Answers

Answer:

The correct answer is the option B: Locating plants on the basis of maximum competitive advantage, in countries where manufacturing costs can be kept low or close to major markets to economize on shipping costs or use of few world-scale plants to capture maximun scale economies and experience curve effects, as most appropiate.

Explanation:

To begin with, the concept known as "Global Strategy" in economics and business terms, refers to the type of method that a company uses in order to accomplish the global penetration of its product so that the sales of the business starts to rise and the profits increases as well. The major bases in this type of strategy are in the fact of finding the places where will be more opmital to produce due to the factors that will influece the production and the plant as a whole. Therefore that in order to succeded with this movement, the company will have to reach economies of scale in those places.

In Year 1, Kane's residence had an adjusted basis of $250,000 and it was destroyed by a tornado (in a federally declared disaster area). An appraiser valued the decline in market value at $425,000. Later that same year, Kane received $200,000 from his insurance company for the property loss and did not elect to deduct the casualty loss in an earlier year. Kane's Year 1 adjusted gross income was $100,000. What total amount can Kane deduct as a Year 1 itemized deduction for casualty loss, after applying any limitations?

Answers

Answer:

The total amount that Kane can deduct as a Year 1 itemized deduction for casualty loss is $39,900.

Explanation:

According to the Internal Revenue Service (IRS), Disaster Area Losses in a federally declared disaster refers the occurrence of a disaster in an area that the President has declared to be eligible to enjoy federal assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

Since Kane's residence falls into the category of personal-use property or it is not totally destroyed, the amount of loss of the property is the lesser of the adjusted basis of the residence, $250,000, and the decline in market value determined by the appraiser, $425,000. Based on this, the amount of loss of the residence is $250,000.

The total amount that Kane can deduct as a Year 1 itemized deduction for casualty loss can therefore therefore be calculated as follows:

Particulars                                                     Amount ($)        

Loss amount                                                   250,000

Amount from insurance                                (200,000)  

Loss of the Taxpayer's                                    50,000

Deduct $100                                                         (100)      

Eligible Loss                                                     49,900

Limitation of 10% annual gross income        (10,000)      

Loss to be deducted                                      39,900    

Therefore, the total amount that Kane can deduct as a Year 1 itemized deduction for casualty loss is $39,900.

The concept "efficiency" has quite different meanings for economists (money out/money in), biologists (energy out/energy in), and political scientists (influence exerted/political capital expended) (Newell, 2001, p. 19). From this statement, we should deduce Group of answer choices It is impossible to integrate insights from economics, biology, and political science because the vocabulary cannot be integrated That as interdisciplinarians we must often bring out common meanings, making them applicable to different texts and contexts. Economists, Biologists, and Political Scientists cannot define words accurately.

Answers

Answer:

That as inter-disciplinarians we must often bring out common meanings, making them applicable to different texts and contexts.

Explanation:

To deduce is to reduce the choices of answers. Basically by deducing it means to reach to a common definition of the word efficiency in all the fields, whether it be economists, or biologists or political scientists.

This will ensure easy understanding and easy communication of the term at broader level. This will clearly provide for the better ease in all the fields of work.

As we relate to more than a single branch of knowledge, using a single term with different meaning in different branches turns the situation complex.

A manufacturer of golf clubs makes a profit of $45 per set on a model A set and $55 per set on a model B set. Daily production of the model A clubs is between 20 and 60 sets, inclusive, and that of the model B clubs is between 10 and 40 sets, inclusive. The total daily production is not to exceed 60 sets. How many sets of each model should be manufactured per day to maximize the pr

Answers

Answer:

Explanation:

Let n₁ and n₂ be the number of set produced of model A and B per day .

n₁ + n₂ = 60

20 < n₁ < 60

10 < n₂ < 40

Total profit Q = 45 n₁ + 55 n₂ = 45 n₁ + 55 ( 60 - n₁ )

Q = 3300 - 10 n₁

So to maximise total profit n₁ needs to be minimum . The minimum value of n₁ = 20

Q = 3300 - 10 x 20

= $ 3100  

So model A should be produced 20 and model B should be produced 40 sets .

An alternative approach to recording unearned revenue would be to ______ when cash is collected from a customer in advance of providing goods and services.

Answers

Answer:

The correct response will be "Credit sales revenue".

Explanation:

Net credit sales would be costs that come by someone with an individual or attribute which enables on account receivables, minus the cost gross sales as well as sales pension contributions. Net loan transactions don't include any transactions about which money changes hands in cashback rewards.

So that the above would be the correct approach.

Which of the following is an example of the calculation of a predetermined overhead rate? A) Estimated overhead divided by estimated direct labor dollars B) Estimated overhead divided by actual direct labor hours C) Actual units produced divided by estimated overhead D) Estimated direct labor hours divided by estimated overhead

Answers

Answer:

A) Estimated overhead divided by estimated direct labor dollars

Explanation:

Predetermined overhead rate is used to apply estimated manufacturing overhead cost to the cost of products or labor for a certain period allocated for reporting. It is usually calculated at the beginning of a certain period and it is also necessary for computing the actual manufacturing overhead cost at the end of the fiscal year.

The predetermined overhead rate can be calculated by dividing the estimated manufacturing overhead by the estimated direct labor dollars or estimated direct labor hours or estimated machine hours for that period. The calculation is based on estimated values, not the actual cost

3. Which of the following is not a characteristic of a good citizen?
obeying laws
being informed about key issues
using natural resources wisely
owning property

Answers

Answer:

Owning property

Explanation:

Its the only one that affects solely 1 person rather than benefit the community as a whole

Let's not do business with AVC Real Estate Company; they discount their commissions" is an example of what?a) Price fixingb) Boycottc) Market allocationd) Tying agreement

Answers

Answer:

Boycott

Explanation:

Unit 1 National Brokerage was tough at first for me too

Because it is a. neither excludable nor rival in consumption, a tornado siren is a common resource. b. rival in consumption but not excludable, a tornado siren is a common resource. c. excludable but not rival in consumption, a tornado siren is produced by a natural monopoly. d. neither excludable nor rival in consumption, a tornado siren is a public good.

Answers

Answer:

D, neither excludable nor rival in consumption, a tornado siren is a public good.

Explanation:

A tornado siren is a siren that is used to give emergency warnings to a large population of an impending danger or danger that has passed.

A tornado siren otherwise known as the civil defense siren is of public good and as such is not a rival neither can it be excluded from consumption.

Cheers

On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a sevenâyear, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822.

Journalize the entries to record the following:

a. Issued the installment note for cash on the first day of the fiscal year.
b. Paid the first annual payment on the note.

Answers

Answer: Please find answer in explanation column

Explanation:

a) Journal to record Issued installment note for cash on the first day of the fiscal year.

Date             Account                             Debit                 Credit

Jan 1     Cash                                     $85,000    

       Notes Payable                                                             $85,000

b) Journal to record the first annual payment on the note.

Date             Account                             Debit                 Credit

Dec 31     Interest  Expense                   $5,950

             Notes Payable                           $9,822.

                 Cash                                                                      $15,772            

Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement:

Raw materials $2,500,000
Work-in-process $1,000,000
Finished goods $800,000

In addition, the cost of goods sold last year (50 weeks) was $12 million. What was the inventory turnover?

a. Less than or equal to 2
b. Greater than 2 but less than 3
c. Greater than 3 but less than 4
d. Greater than 4

Answers

Answer:

Maple Leaf, Inc.

Inventory Turnover:

b. Greater than 2 but less than 3

Explanation:

a) Data and Calculations:

1) Average inventories:

Raw materials     $2,500,000

Work-in-process  $1,000,000

Finished goods      $800,000

Total average inventory   $4,300,000

Cost of goods sold = $12,000,000

Inventory Turnover = Cost of goods sold/Average Inventory

= $12,000,000/$4,300,000

= 2.79 times

2) Inventory turnover is a financial ratio that shows the number of times in a year that inventory has been sold by Maple Leaf, Inc.  When it divides the number of days, say 360 days in a year, the ratio that comes out shows the number of days it takes Maple to sell its inventories.

You own a house that you rent for $1,400 per month. The maintenance expenses on the house average $260 per month. The house cost $231,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $253,000. If you sell the house you will incur $20,240 in real estate fees. The annual property taxes are $3,100. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office

Answers

Answer:

$232,760

Explanation:

you must first determine the market value of your house = appraisal value - sales expenses = $253,000 - $20,240 = $232,760

the market value of the house is your opportunity cost of using the house as an office.

opportunity costs are the extra costs or benefits lost resulting from choosing one investment or activity over another alternative.

Capacity of a ship used to determine taxation of the ship by its country of registry or by port or canal authorities is called

Answers

Answer:

Gross Registered Tonnage. Hope this helps! =)

A critical success factor in project management is to: Group of answer choices Say "no" to all requests because they add to scope creep. Use throwaway prototyping. Use a CASE tool to delineate requirements from work tasks. Start with a realistic assessment of the work that needs to be done. Hire an outside project management consulting group.

Answers

Answer: Start with a realistic assessment of the work that needs to be done.

Explanation:

Project management involves the planning, organization and the effective use of the resources that are available in order to achieve the project goals.

A critical success factor in project management is to start with a realistic assessment of the work that needs to be done.

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