試題詳解

12. TTT, Inc.sells collectible jewelry on consignment from various manufacturers. Additionally, TTT sells its own line of specialty jewelry manufactured in-house. On December 31, 2019, during TTT, Inc 's annual inventory count, an inexperienced new staff member included in TTT’s ending inventory €350,000 worth of inventory held on consignment from MMM Associates. Which of the following is correct regarding the impact of this error on TTT’s income statement and statement of financial position at December 31, 2019?
(A) Ending inventory is understated by €350,000.
(B) Cost of goods sold is overstated by €350,000.
(C)Retained earnings is overstated by €350,000.
(D) The financial statements are correctly stated.