1. Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
   1. Cannot be determined given the information provided.
   2. Have no effect on cost of goods sold.
   3. Understate cost of goods sold.
   4. Overstate cost of goods sold.

2. The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:
   1. A debit to an asset. B) A debit to a liability.

C) A credit to a liability. D) A credit to an asset.

Sales revenue	$350,000
Accounts receivable	$280,000
Ending inventory	$230,000
Cost of goods sold	$180,000
Sales returns	$50,000
Sales discount	$20,000

32)

Given the information in the above table, what is the company's gross profit?

A) $100,000. B) $50,000. C) $170,000. D) $280,000.

33. If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
    1. Either plan B) Defined Benefit Plan

C) Neither Plan D) Defined Contribution Plan