The Overstatement of the Ending Inventory Balance Causes

question 36

Multiple Choice

The overstatement of the ending inventory balance causes:

• A)Cost of goods sold to be overstated and net income to be understated.
• B)Cost of goods sold to be overstated and net income to be overstated.
• C)Cost of goods sold to be understated and net income to be understated.
• D)Cost of goods sold to be understated and net income to be overstated.
• E)Cost of goods sold to be overstated and net income to be correct.

---

Definitions:

Research Results

The findings or outcomes derived from conducting scientific studies, experiments, or other forms of inquiry.

Journal Article

A published work that presents original research, findings, or theory within an academic or professional field.

Statistical Analyses

The methods and techniques used to collect, analyze, interpret, and present data in a meaningful context.

Data Obtained

The information collected or received from various sources through research, observation, or recording.