The Ending Inventory of XZW Was Overstated by $6,000 in 20x4.The

question 26

Multiple Choice

The ending inventory of XZW was overstated by $6,000 in 20x4.The overstatement will cause XZW's:

• A)No misstatements on the 20x5 balance sheet.
• B)Cost of goods sold to be overstated by on the 20x4 income statement.
• C)Income to be overstated by on the 20x5 income statement.
• D)Cost of goods sold to be understated by on the 20x5 income statement.
• E)Retained earnings to be understated by on the 20x4 balance sheet.

---

Definitions:

Fourteenth Amendment

An amendment to the US Constitution that grants citizenship and equal civil and legal rights to all persons, including previously enslaved individuals.

Equal Protection Clause

A provision in the Fourteenth Amendment of the U.S. Constitution requiring states to treat all individuals within its jurisdiction equally under the law.

Fourth Amendment

A provision in the United States Constitution protecting citizens against unreasonable searches and seizures by the government.

Foreign Corporation

A business entity that is registered and operates in a different country from where it was originally incorporated.