An Understatement of the Beginning Inventory Balance Causes Cost of Goods

question 161

Multiple Choice

An understatement of the beginning inventory balance causes cost of goods sold to be:

• A)understated and net income to be understated.
• B)understated and net income to be overstated.
• C)overstated and net income to be understated.
• D)overstated and net income to be correct.

---

Definitions:

Inductance

A property of an electrical conductor by which a change in current in the conductor induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Voltage Drop

Voltage drop is the reduction in electrical potential across a component or conductor in an electrical circuit as current flows through it.

RLC Series Circuit

An RLC series circuit is an electrical circuit consisting of a resistor (R), an inductor (L), and a capacitor (C) connected in series, exhibiting both resistive and reactive properties.

True Power

The actual power consumed by an electrical device in watts, calculated as the product of voltage, current, and the cosine of the phase angle between them.