An item of inventory purchased this period for $15.00 has been incorrectly written down to its current replacement cost of $10.00. It sells during the following period for $30.00, its normal selling price, with disposal costs of $3.00 and normal profit of $12.00. Which of the following statements is not true?
a. The cost of sales of the following year will be understated.
b. The current year's income is understated.
c. The closing inventory of the current year is understated.
d. Income of the following year will be understated.
Ans: d. Income of the following year will be understated.
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According to Michael Porter, ________ is based on a firm's decision to carry out a limited number of activities related to delivering a limited product or service
A) needs-based positioning B) variety-based positioning C) access-based positioning D) global network positioning
Michael LeBoeuf, author of How to Win Customers and Keep Them for Life, says that a surprising number of yes responses occur:
A) during the first trial close B) on the fourth or fifth closing attempt C) during the approach stage of the sales process D) after the salesperson asks for the order twice E) after the salesperson gives up the sale as lost