If Cost of Goods Sold for the Year Was Overstated

question 23

Multiple Choice

If cost of goods sold for the year was overstated, but all other financial statement items were properly reported, the calculated inventory turnover ratio would:

• A)indicate the chance of running out of inventory was lower than it was.
• B)be unaffected by this error.
• C)indicate the company was more profitable than it actually was.
• D)indicate that inventory was being turned over more times than it was.

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Definitions:

File-to-File Move

A operation in computing where data is transferred directly from one file to another within the same or between different storage mediums.

Data Transfer

The process of moving or copying data from one location, device, or system to another, often involving different types of networks and protocols.

U-1 Measure

A specific metric for unemployment that counts individuals who have been unemployed for 15 weeks or longer, indicating long-term unemployment.

U-6 Measure

A comprehensive unemployment rate that includes those who are not actively looking for work, those working part-time but seeking full-time employment, and other marginally attached workers, in addition to the unemployed who are actively looking for work.