What Is the Effect on the Cost of Goods Sold

question 45

Multiple Choice

What is the effect on the cost of goods sold account when the inventory account is overstated?

• A) It is overstated.
• B) It is not affected.
• C) It is increased disproportionately.
• D) It is understated.

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Definitions:

X

Often used to denote an independent variable or an unknown value in equations and functions.

Polynomial

An algebraic expression consisting of terms in the form of ax^n where a is the coefficient, x is the variable, and n is a non-negative integer.

Monomial

An algebraic expression consisting of a single term, which can be a constant, a variable, or multiples of variables and constants.

Sum

The result obtained by adding two or more numbers or expressions.