Overstating Ending Inventory Has the Following Effect on Cost of Goods

question 32

Multiple Choice

Overstating ending inventory has the following effect on cost of goods sold and net income, respectively.

• A) Overstated, overstated
• B) Understated, overstated
• C) Overstated, understated
• D) No effect on either account

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Definitions:

Learning Disabilities

Neurologically-based processing problems that can interfere with learning basic skills such as reading, writing, or math.

Attention-Deficit/Hyperactivity Disorder

A condition characterized by persistent difficulties with attention and/or impulsivity that interfere with performance and behavior in school and daily life.

Intellectual Disability

A developmental condition characterized by significant limitations in both intellectual functioning and adaptive behavior, originating before the age of 18.

Dyslexia

A learning disorder characterized by difficulties with accurate and/or fluent word recognition and by poor spelling abilities.