Overstating ending inventory by $10,000:

Select one:

a.no effect on cost of goods sold and gross profit

b.understates cost of goods sold and overstates gross profit by $10,000.

c.understates cost of goods sold and understates gross profit by $10,000.

d.overstates cost of goods sold and overstates gross profit by $10,000.

e.overstates cost of goods sold and understates gross profit by $10,000.

When preparing a bank reconciliation what would cause the bank statement balance to be less than the adjusted cash balance in the general ledger? (Assume the bank isnotin overdraft.)

Select one:

a.Bank fees.

b.Direct withdrawal from the bank account.

c.Dishonoured cheques.

d.Outstanding deposits.

e.Outstanding cheques.