ACC 304 All Assignments ACC 304 All Assignments | Page 83

c. as a deduction in the cost of goods sold section of the income
statement and as a current asset on the balance sheet.
d. as an addition in the cost of goods sold section of the income
statement and as a current asset on the balance sheet.
P40. If the beginning inventory for 2012 is overstated, the effects of
this error on cost of goods sold for 2012, net income for 2012, and
assets at December 31, 2013, respectively, are
a. overstatement, understatement, overstatement.
b. overstatement, understatement, no effect.
c. understatement, overstatement, overstatement.
d. understatement, overstatement, no effect.