If a period-end inventory amount is reported in error,it can cause a misstatement in all of the following except:

A) Cost of goods sold.
B) Gross profit.
C) Net sales.
D) Current assets.
E) Net income.

Question

If a period-end inventory amount is reported in error,it can cause a misstatement in all of the following except:A) Cost of goods sold.B) Gross profit.C) Net sales.D) Current assets.E) Net income.

Cassandra Parsons · Accepted Answer

Final Answer : C, Explanation :  Net sales are primarily affected by the number of units sold and the selling price per unit, not by the cost of goods sold or inventory amounts. Misstatements in period-end inventory impact cost of goods sold, gross profit, current assets, and net income, but not the net sales figure.

If a period-end inventory amount is reported in error,it can cause a misstatement in all of the following except:

A) Cost of goods sold.
B) Gross profit.
C) Net sales.
D) Current assets.
E) Net income.

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Learning Objectives

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