Problem -
A company understated its ending inventory balance by $4,000 in 2018. What impact will this error have on total assets and retained earnings in 2018 and 2019 (ignoring tax effects)?
We expect this unit to be challenging, perhaps not academically, but instead by getting you outside your comfort zone. For many of you, your success to date has been derived from rational logically thinking. Assignments you have done at school, for example, will have been generally rigid in the sense of well-defined boundaries and few or just one right solution. Part A of this assignment is to begin the process of throwing the rules out the window. You have permission to be as imaginative, silly and surprising as you like. Parts B and C are perhaps a bit more traditional in the sense that you should do some research and construct an argument. However even there you are given opportunity to imagine what the future might bring.
Part A: Perturbing thoughts
Step 1: Take the last 2 numbers in your student number. if they are the not the same number then go to Step 2. If they are the same number add 1 to the last number {e.g. '77' → '78'). In the case of '90'
e.g. 54465227 → 2 and 7
54465233 → 3 and 4
54465299 → 9 and 0
54465200 → 0 and 1
Step 2: Select the two words from the following list which correspond to your two numbers from Task 1.
|
Number
|
Word
|
|
0
|
cat
|
|
1
|
bus
|
|
2
|
dress
|
|
3
|
apple
|
|
4
|
elbow
|
|
5
|
bomb
|
|
6
|
moon
|
|
7
|
fire
|
|
8
|
hammer
|
|
9
|
glue
|
For example, if your student number is 20150532. The two numbers would be '3' and '7' and the two words 'apple' and 'fire'.
Step 3: Using your two words in any order, adding and subtracting from the words in any way {though still being recognisably* your two words] do the following tasks:
Task 1: In less than 15 words describe symptoms of the (fictitious) disease named according to your two words.
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct? The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?
The ending inventory balance represents:
a. expired costs and is reported on the income statement as an expense.
b. unexpired costs and is reported on the balance sheet as an asset.
c. expired costs and is reported on the balance sheet as an asset.
d. the cost of goods sold during the current period and is reported on the balance sheet as an asset
Which choice (a, b, c, or d) is correct?