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Ending inventory as of 12/31/22 was understated.  Assuming the understated inventory sold during 2023, which of the following statements is true regarding the financial statement impact?

Use the following information for the next two questions: On January 15, 2023, Flynn Appliances entered into a sales contract with a customer for the sale of a commercial grade freezer.  The contract price of $15,000 included the freezer, installation and a 1-year maintenance contract.  On a stand-alone basis, Flynn sells the freezer for $15,000 (cost of $10,000), installation for $3,000 and the 1-year maintenance agreement for $2,000.  Flynn identifies the sale of the freezer, installation and maintenance agreement as separate performance obligations.  Flynn delivered the freezer on February 1st and installed the freezer on February 15th.

McKinley Industries purchased a piece of equipment for their manufacturing facilities and paid with a 3-year, zero-interest bearing $125,000 notes payable.  Assuming a 5-year useful life and no salvage value, how much straight-line depreciation expense would McKinley record for this asset each year?  McKinley typically borrows at a rate of 5%. The present value of one for 3-periods at 5% is: .86384 The present value of one for 5-periods at 5% is: .78353 Round all calculations to whole dollars.

Use the following information for the next two questions: On April 1, 2022, Brecken’s Art Co. consigned 80 prints of popular painting, costing $50 each, to Grayson’s Market.  On October 31, Grayson’s Market. reported that 60 prints had been sold for $325 each.  Grayson’s Market remitted the appropriate amount due after deducting a commission of 5% of sales.

Masters Company sold 250,000 units of their product during March.  The products sell for $9/unit and carries a cost of $2/unit.  Masters Company accepts product returns for 4-months post sale. During March, 100 units of product were returned.  As of March 31, a balance sheet date, Masters Company estimates that another 225 products will be returned before the right of return expires. When Masters Company prepares their income statement on March 31, what is the net amount of revenue (revenue – sales returns and allowances) they will report related to the sale of these products?

Which of the following statements are true? I: Changes in accounting principles and changes in accounting estimates are accounted for the same way II: Changes in accounting principles are accounted for using a retrospective approach  III: Changes in accounting principles and the correction of an error could lead to an adjustment of beginning retained earnings. IV: Adopting a new accounting standard, like the new Revenue Recognition Principle, should be accounted for as a change in accounting principle.

The condition causing deformations of the bones of children because of a lack of calcium absorption is

A condition characterized by periodic disturbances of consciousness is known as

A hyperfunction of the cortex of the adrenal glands will cause adiposity, impotence, fatigue, and purplish skin discolorations.  This disease is

An abnormal anterior curvature of the spine is