Zebra Company Overstated Its December 31, 2016 Inventory by $5,200

question 161

Multiple Choice

Zebra Company overstated its December 31, 2016 inventory by $5,200.Which statement is true concerning Zebra's financial statement amounts for 2016?

• A) The current ratio is overstated.
• B) Cost of goods sold is overstated.
• C) Working capital is understated.
• D) Net income is understated.

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Definitions:

Defensive Merger

A strategy where a company merges with or acquires another company to protect itself against potential competitors or hostile takeovers.

Hostile Takeover

An acquisition attempt by a company or individual against the target company's wishes.

Cash Bidding Price

The price offered in cash during an auction or bidding process for an asset or item.

Market Price

The market price at which you can currently buy or sell an asset or service.