The Ending Inventory of XZW Was Overstated by $6,000 in 20x4.The

question 57

Multiple Choice

The ending inventory of XZW was overstated by $6,000 in 20x4.The overstatement will cause XZW's:

• A) Retained earnings to be understated by on the 20x4 balance sheet.
• B) Cost of goods sold to be understated by on the 20x5 income statement.
• C) Cost of goods sold to be overstated by on the 20x4 income statement.
• D) Income to be overstated by on the 20x5 income statement.
• E) No misstatements on the 20x5 balance sheet.

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Definitions:

Analytical Intelligence

Part of Sternberg’s Triarchic Theory of Intelligence, focusing on the ability to analyze, evaluate, judge, compare, and contrast.

Creative Intelligence

The aspect of intelligence that involves the capacity to be flexible, innovative, and inventive in thinking.

IQ Tests

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