The Effect of an Error Resulting in an Understatement of Ending

question 42

Multiple Choice

The effect of an error resulting in an understatement of ending inventory is to:

• A)overstate the next period's beginning inventory.
• B)understate cost of goods sold of the current period.
• C)overstate cost of goods sold of the current period.
• D)overstate operating expenses of the current period.

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Definitions:

Acromiodeltoid

A muscle in the shoulder region, involved in the movement of the shoulder and giving shape to the top of the shoulder.

Clavodeltoid

A muscle in some animals that resembles human muscles in the shoulder region, but there's no direct human equivalent. For humans, refer to the deltoid muscle.

Cervical Vertebrae

The vertebrae in the neck region of the spine, numbered C1 through C7, which support the skull and enable a range of head movements.

Thoracic Vertebrae

Comprise the middle portion of the vertebral column, characterized by the presence of costal facets for rib articulation.