FAR 2

Question 1

When Ending Inventory is overstated, what is the effect on COGS?

Answer 1

Understated - opposite as Ending Inventory

Question 2

When Ending Inventory is understated, what is the effect on COGS?

Answer 2

Overstated - opposite as Ending Inventory

Question 3

When Ending Inventory is understated, what is the effect on Net Income?

Answer 3

Understated - same as Ending Inventory

Question 4

When Ending Inventory is overstated, what is the effect on Net Income?

Answer 4

Overstated - same as Ending Inventory

Question 5

When Purchases are overstated, what is the effect on Net Income?

Answer 5

Understated - opposite of Purchases

Question 6

When Purchases are understated, what is the effect on Net Income?

Answer 6

Overstated - opposite of Purchases

Question 7

When Purchases are understated, what is the effect on COGS?

Answer 7

Understated - same as Purchases

Question 8

When Purchases are overstated, what is the effect on COGS?

Answer 8

Overstated - same as Purchases

Question 9

When Beginning Inventory is overstated, what is the effect on COGS?

Answer 9

Overstated - same as Beginning Inventory

Question 10

When Beginning Inventory is understated, what is the effect on COGS?

Answer 10

Understated - same as Beginning Inventory

Question 11

When Beginning Inventory is overstated, what is the effect on Net Income?

Answer 11

Understated - opposite of Beginning Inventory

Question 12

When Beginning Inventory is understated, what is the effect on Net Income?

Answer 12

Overstated - opposite of Beginning Inventory