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Assume That a Purchase Invoice for $1,000 Was Appropriately Recorded

Question 60

Multiple Choice

Assume that a purchase invoice for $1,000 was appropriately recorded in fiscal 2016,but the inventory was excluded in error during the ending inventory count.What impact will this have on fiscal 2016 financial reporting?


A) Gross margin is overstated.
B) Cost of sales is overstated by $1,000.
C) Ending inventory is overstated by $1,000.
D) Cost of goods available for sale is overstated by $1,000.

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