Answered: 11. What is the effect on cost of goods…

11. What is the effect on cost of goods sold, gross profit, and net income if ending mer- chandise inventory is understated? 12. When does an inventory error cancel out, and why?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 9MC: Which of these statements is false? A. If cost of goods sold is incorrect, ending inventory is...

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Question

Answer questions 11. And 12.

dise inventory under the LCM rule?
11. What is the effect on cost of goods sold, gross profit, and net income if ending mer-
chandise inventory is understated?
12. When does an inventory error cancel out, and why?
13
How is inventory turn over calculated and what does it meegure)

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