The analysis of sales figures for a retailer has been greatly facilitated by the use of UPCs

A __________ is everything, both favorable and unfavorable, that a person receives in an exchange

Fill in the blank(s) with the appropriate word(s).

The ending merchandise inventory for the current accounting period is overstated by $3,500. What will be the effect of this error?

A) The net income for the current accounting period will be overstated by $3,500. B) The cost of goods sold for the current accounting period will be overstated by $3,500. C) The ending merchandise inventory for the next accounting period will be overstated by $3,500. D) The cost of goods sold for the next accounting period will be understated by $3,500.