An Overstatement of the Beginning Inventory Results in

question 18

Multiple Choice

An overstatement of the beginning inventory results in

• A) an overstatement of net income.
• B) an understatement of net income.
• C) no effect on the period's net income.
• D) a need to adjust purchases.

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Definitions:

Reduction Reaction

A chemical reaction that involves the gain of electrons or the decrease in oxidation state by a molecule, atom, or ion.

Carbon Dioxide

Produced during the burning of carbon and organic matter as well as through the respiration process, this odorless, colorless gas is a natural part of the atmosphere and essential for photosynthesis in plants.

NAD+

(Nicotinamide Adenine Dinucleotide) Coenzyme in oxidation-reduction reactions that accepts electrons and hydrogen ions to become NADH + H+ as oxidation of substrates occurs. During cellular respiration, NADH carries electrons to the electron transport chain in mitochondria.

Cellular Respiration

The metabolic process by which cells convert nutrients into energy (ATP), involving the oxidation of food molecules and the release of waste products.