The Ending Merchandise Inventory Was Overstated

question 92

Multiple Choice

The ending merchandise inventory was overstated.This error would cause:

• A)net income to be understated.
• B)revenue to be understated.
• C)net income to be overstated.
• D)expense to be overstated.

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Definitions:

Direct Relationship

A situation where two variables move in the same direction, meaning that as one variable increases, the other also increases, or as one decreases, the other also decreases.

Variables

Elements, features, or factors that are likely to vary or change from one instance to another within a study or experiment.

Uniquely Determined

A condition where a solution or outcome is specified exactly by the given constraints or equations without ambiguity.

Specified

Specified refers to being explicitly stated, defined, or detailed.