which-of-the-following-financial-statements-would-be-impacted-by-a-current-year-ending-inventory-err

Question

Which of the following financial statements would be impacted by a current-year ending inventory error, when using a periodic inventory updating system?
A. balance sheet
B. income statement
C. neither statement
D. both statements

Puneet Prajapati · Accepted Answer

So let&#x27;s understand deterrence solution. But before that ve vill and mr how looking to pay the balance sheet and what items are comprised in the bed and shoot. Okay. Quarterback leaving. Understand? What is the solution to our Okay? I am using the traditional for more valiant shoot. Okay, who make it more clearer? So generally there are three types of items in the balance sheet. I have written all those broad items which will be classified in the balance sheet. Okay. Based on that, I have used different types of Paris for different three different times. Okay, so first of all, let&#x27;s start with liabilities. Location liabilities are the amounts which a business Anquetil has to pay off their suppliers. Okay, let&#x27;s suppose we have a business off nature. Okay? Now, to make furniture, we need raw material in inform off blocks. OK, so what happens when you when you purchase some good love song, the supplier or some other person? Okay, so what you what you said to him after purchasing or after receiving the clothes that do feel you will pay off the amount of you in a deluded wanting that Let&#x27;s him in one year What? No. What happens? That amount people becomes available after one year. No, that won&#x27;t be considered us liabilities. Okay. And that is generally owners account stupid. So I will be giving example for each off the terms, OK? And you can write it down this example for future reference. Okay, so that Jovan or get confused that how did we arrive? The correct choice at the end of the explanation. Okay. So for a region with so far making understand each of their don&#x27;t be able take example in respect of business that is dealing in furniture, sending off nature. Okay. No, What is the capital? Okay, so this amount, you can understand that. But I have written celebrities vindicated been because we have to pay it in a future. So we can, you know, in front from the liberties that it is a moment that we are not supposed to like it buy because we have because it incurs the expenses like it. It is likely to result in being love some other person from which we have received goods or services. Okay, so that is why African breakfast just I have written deputies with no windows on Capitol. It is the investment off the owner of the business. Like to support Mr A is the owner of business. No, whatever amount or whatever. Let&#x27;s see. And new day above investment, which e which Mr has bean Hezbollah into the business to start the business, okay, will be considered as capital. Okay, let&#x27;s suppose Mr a broad gash as well as his bank balance. Okay, who started the business? Okay, so the capital is the amount of investment which has been brought by owner who start doing business, OK, at the initial level, as well as in the middle of the opening love business. Okay, Now celebrities have bean gratified and capital also. Now let&#x27;s come to a sex. We&#x27;re gonna sex. Let&#x27;s suppose you have sold furniture. Who? Your new customers. Okay. No. What happens? The customers say that you are a new businessman, so I cannot trust you. Initiative. So what? I can offer you that I will pay you the Ammon okay against the furniture I have bought from you in one year&#x27;s time. Okay, So that is what our customers said to us. Know what will happen when we will have any day off amount that that is receivable from our customers. Okay, then such a long beat considered s sex. Okay, so the the referred that amount which is receivable from the accepts. Which is this even from the customers? Yes, a coincidence. E okay. Know what happens? So this is the full explanation. So I&#x27;m writing down the difference. That&#x27;s why we have maybe have a conscience. Evil. And I said site because of furniture sold on ready. Okay. Here also, we have good laws, but chased on credit basis. Lighted basis means the payment will be paired on that payment will be See a few chip on. Do you think now what happens in a suicidal to There is one item margin that is inland. No. What is it? May be in 20. Is there a moment again? Okay, it is. There are material which has no being processed yet to be converted into furniture. Okay, so in when they can include drama Gideon Vorgan progress like it has bean semi furnished. Or we can say it has bean. It is a it is in us semi persist fall like neither finished normative Sammy Sammy possessed okay in Mandarin can also finish Good. Also, which would not be sold to the customer during the current. So that is why we have in 20 on the sex site in the Ballon ship. So we have the right our solution, that on which of the statement leaving list our American dies in 20 account. Okay, so what&#x27;s what is that statement? It is balance sheet. Okay, so the correct choices. Okay, you can write down this example so that you can get a clear idea that How did be it? I beg that. How did we arrive it? This solution, that is choice. Okay, that&#x27;s on foot of a solution. Thank you.

Puneet Prajapati · Answer

Okay, So let us understand the current solution, But before moving to the institution vigilance and understand the concept off religious statements. And how do we teach to the occupation of financial statements? Okay, let&#x27;s suppose we have Ah, business off. Setting radio gives. Okay. Okay. This is over business. OK, so whenever be sell, you begin to customer. Or more specifically, Children. What happens? It consists off to evens be sell video games to the beatings. Okay. The parents of the Children and the parents give us money back against the video gives. So they&#x27;re supposed to be up financial drawn. The chip often. Angel religion is a plan in action. Victor. Ricin Villas exchange off money against the goods and services. Okay. It is very, very well industry. Okay, now what happens in the business? There is a cities of transactions. Let&#x27;s suppose 100. Okay, So what happens? Who to get a clear idea that how many transactions has the the entity has entered with other entities or other persons? Okay, we need to record or those transactions. Okay. After that, we get a detailed summary that war type off transactions happened with veg entities. How much the amounts. How much the amounts of the transaction happened with entity And, like, Vice. Okay, that comes from the posting. So posting provides it. They&#x27;re detail. Somebody off transactions happened with them. Entity. Okay. And an entity or different types of amputees. After posting, we have some organization. Now at this immunization process. What happens? This dictated details. Memorization becomes very brief in this process, and this is done to trial ballots. You can know this diagram on your notebooks also. Okay. No. After moving to brief brief civilization, they Then finally, it comes to the financial statements. There be prepared balance sheet. First of all, we do not prepared Ben, and she&#x27;d be prepared Income statement then moved to balance sheet, then moved to statement of cash flows. Okay. And like rice, So this is the process. Okay. This is also loan as accounting cycle. This process is known as a camping cycle. The process off accounting in any type of organisation. Okay, So we have a business of video games and the process to record the transaction. Italy and off probation, orphanages, statements. A potion has Oz. Says what? Which of the falling is not included in the ban. Interesting. So for the information financial stake names will include First of all, it will include income statement. What is income statement? What is well in sheet? We will discuss Ben. We will face the problems allergic to sit concepts. And then you just take a note off it for the for the current solution. OK, then we prepare the balance sheet, okay? And it last beep. Very cash. Mr. Yes, Mr. Okay, that&#x27;s clear. So the potion disasters. Which of the following is not included in financial stickers? So the correct answer we can die from the from from about explanation we have made so far that make choices The statement off owner investments. Okay, that statement is not included in financial statements, so you can know down. So she&#x27;d one she toe on the in orders for back a revision. However Indian, we have a conclusion uncertain as correct choice says the Okay, that&#x27;s all for another solution. Thank you.

Puneet Prajapati · Answer

Okay, So via going to understand, they don&#x27;t reading earnings. Okay, little suspects. Okay, so it is the Ammon Dogs. That is gender YouTube by the business entity. Okay, which is get or we can say, which is not distributed among shareholders. It is mostly used in expending business projects. Okay, so we have defined that forbids the actual meaning over terrain ordinance. Okay, so it is the amount of profits that of business and read it keeps in its reserves, and it is generally not distributed among she and orders. OK, so let&#x27;s is it borders and indeed Legionaries $1000 of profit in India? So it is very likely if the entities practicing the distribution of dividend to the extent off Lexus 70 was it that this $700 so $300 will be, but your dander needs and $700 would be that dividend. Okay, So if the dividend competent will put to shareholders, undertake, the angel wings will be used for expending business projects. Okay, because some time it happens that the company, you know, being need all forms. So that is why the this portion is kept always so that the completely never shot off us, okay? No, like this. Understand? There, there, they retain their next balance will come. Okay, so first of all, be everything that What is that, Jimmy New over carrying on things? No, that retained earnings. It will first come to melon cheek. Okay, by that. So because it deep is aims that what is the actual amount that entity is having in terms off results? Who explained the business projects who find the day to day business from the chance? Okay, so this account will be classified in there, this different. Okay, Now, what happens then? When they deserve specific purpose to prepare off particular fan inches or bigger statement so that it will be could be a day specifically for that purpose. Okay. And in that case, we have we will have, but it ain&#x27;t nothing. Statement, okay? And that who is also required aspect regulatory class. Okay, sold This one as well as this one will have retained earnings balance as them as the one of the components. Okay, which has to be reported. As for the evaluating requirement. Okay, so that&#x27;s all for our solution. So that is why we have two choices that matches with the current solution that this a and see So the correct choice. This, uh see. Okay, that&#x27;s all for this edition. Thank you.

Puneet Prajapati · Answer

Okay, So we are doing the stag in Hendry. What is the meaning of it and looted expects. Okay, so in 20 is nothing. It is thieves all McKinney in. Okay, it is the law practice cheesed by business entity who put a bed finished course. Okay. I like to support Date is our That is a business on it. Always dealing in business, off selling for me. Chip, perhaps, like chairs and tables. And so for sex. And likewise. Okay, so he has to acquire Roma TDN. Okay? He has to be acquired. Rahmati, that people says such girls. Okay, now what happens? They never Then whenever I need business or any business or chases the inventory, Okay, What happens? There are new circumstances. 1st 1 is that for purchasing the 20. The business entity pays cash with a supplier. Okay. Against the chains, off material or in mentally on the supplier. Okay. And back bush in that cash to supplier will be considered in incomes to Okay, but let&#x27;s suppose we have a good relations with suppliers and supplier may allow credit off who? Three. Once the business. Okay from movie. A case of it in 20. Okay, so it will become our level. If you will not be the supplier immediately on purchasing off from material orange country, then it will become a liability. Okay, so it will be classy fighting that in sheet. Okay, so one once again, like the recluse circumstances and veep urges Elementary. Either we will a gastro supplies immediately the lock and we would pay later on in time. And that component will be classified in Bellingen. Okay, so that is what we have given in the current caution. Okay, we can also this liability. We can also we can also refer to it. That&#x27;s supplies. Okay. And this is supplies expense. So expense will be recorded income, statement and liability part because it is not a liability. It is just the inventor. Okay, so it will be classified in balance sheet. So that matches with Joyce. Hey, that is that engine. Okay, So supplies will be classified in bed, and she&#x27;s okay. That&#x27;s all part of a solution. However, you can write cheap mobile as well as she remembered on your load books for future reference. But answer will beat choice. Okay. Thank you.

Puneet Prajapati · Answer

Okay, So let us understand the current solution for the problem. Okay? First off, one, we will understand what other financial statements. Then we will move to government solution. Okay? You It comprises off. Really detailed statement off financial position off. And then Judy distracting the liquidity decked gash, flu, gas, fuel positions. Okay. So far in just eight minutes, it comprises off the statement of financial position, often entity deflecting liquidity, debt and Castro. I think we do not need to write this one. It&#x27;s enough to pull this off. So Okay, sore. And now let&#x27;s move to the actual elements off an injustice. So financial statements includes. So I&#x27;m going to write. I&#x27;m going to write in the sequence and you have to follow the sequence whenever you move to the later advanced advanced problems. Okay, so first of all, after the accounting cycle and after the nor the carbon cycle, Okay, selects that I down the hierarchy. Then I will make you understand that how the process works. First of all, we prepare income statement. Okay? Please write it down. First of all, ve prepared income statement ordered by that we prepare the balance sheet followed by that be prepared. Statement off gas flows, then north to Because Okay, this is the This is the hierarchy. Okay, so I have won so many that adult like it&#x27;s a first. First. Is this one second? Is this one? Hired Is this one? And at the last four this this one. Okay, now what is income Statement? Berlin. She stay put off Castro. All those two counts. We will later understand? We will later it understand? But as the main solution off our current problem, this is the gun. So I will try to define it more briefly. Okay, so in comes a clipboard. Does it show it chose the net profit off the company? Oh, we can see net profit loss off the company gender. You dude, I do indeed. Going. Okay. So I just reflected how much profit our laws. The entity has energy during the current gator. That&#x27;s on the in comes a grim purpose, So Okay, No, As of Amine solution, what is our main solution then? So the correct choice for problem for Dylan is be that this income state that it is the first thing This statement is the first thing doctors needed to be prepared before the balance ship rotation. Okay, so that&#x27;s all for our current solution. Thank you.

Problem

Which of the following would cause periodic endin…

Problem 12 Easy Difficulty

Which of the following financial statements would be impacted by a current-year ending inventory error, when using a periodic inventory updating system?
A. balance sheet
B. income statement
C. neither statement
D. both statements

Answer

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting