Phipps Corporation overstated its ending inventory on December 31, Year 1. Which of the following correctly identifies the effect of the error on Year 2 financial statements? Multiple Choice Cost of goods sold is overstated. Gross margin overstated. Ending inventory is understated. Net income is overstated.

Cost of goods sold is overstated.

Explanation:

Since in the question it is mentioned that the ending inventory is overstated on December 31, Year 1 financial statements due to which the effect of this error results in the financial statements on year 2 is the overstated of the cost of goods sold

Hence, the first option is right

Therefore, the other options are wrong

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi